N1,592/$1: CBN Updates New Exchange Rate for Dollar, Pound, Euro
- Nigerian currency has once again depreciated against the United States dollar in the foreign exchange market
- The value of the naira also depreciated against the pound and the euro, leaving the CBN with more headaches
- Aminu Gwadabe, the president of ABCON, explained to Legit.ng in a chat why the naira is depreciating despite CBN intervention
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian naira has depreciated against the United States dollar in the official and unofficial forex markets.
According to data from the FMDQ Securities Exchange, the naira for the naira day dropped in value in the Nigerian Autonomous Foreign Exchange Market (NAFEM) to exchange at N1,592.06/$1 on Tuesday, August 20, 2024.
Source: Getty Images
Wednesday's exchange rate represents a 0.81% or N12.84 depreciation compared to the N1,579.22/$1 it closed at in the preceding session.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
The naira's fall comes amid a decline in forex transactions from banks and authorized dealers.
On Tuesday, total forex turnover was $152.26 million, compared to the previous day'sd$162.99 million, indicating a decrease of 6.6% or $10.73 million.
Naira rate against pound, euro
It was the same scenario for the naira against the British pound and the euro.
Data from the CBN showed that the Nigerian currency declined in value against the pound sterling in the official market by N26.41, settling at N2,067.87/£1, compared to N2,041.46/£1 the previous day.
Similarly, the naira lost N23.naira value against the euro, exchanging at N1,762.43/€1 versus N1,739.40/€1 quoted in the preceding session.
Naira to dollar rate at black market
Meanwhile, traders told Legit.ng in the black market that the naira also depreciated against the dollar.
Abdulahi, a BDC trader, told Legit.ng:
"We sold the naira at N1,600/$1, a N5 depreciation compared to the previous day’s rate of N1,595/$1."
ABCON president speaks on naira fall
In a chat with Legit.ng, Aminu Gwadabe, the president of the Association of Bureau De Change Operators of Nigeria (ABCON), blamed the CBN's inconsistent forex intervention for the naira depreciation.
He said:
"The intervention of the CBN in the BDCs subsector, being the third level of the market, is aimed at achieving convergence between the official and parallel market rates to ensure price discovery.
"So far, the CBN's intervention in the BDCs subsector has proven to be the most effective and potent policy tool for achieving its mandate of price stability.
"The challenge lies in the volume and frequency of the CBN's intervention in the BDCs. I therefore want to advise that, to maintain the success achieved and enhance policy effectiveness, the CBN should continue to leverage the BDCs to fulfill its core mandate."
Report predicts how Nigeria will get dollars
Legit.ng earlier reported that a recent quarterly statistical bulletin from the Central Bank of Nigeria (CBN) highlighted that foreign exchange (FX) consumers consumed more dollars in the three months ending in December 2023 than they did in the previous quarter.
It said the inflows would likely come from World Bank budget finance, NNPC-related flows, and Eurobond issuance.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
PAY ATTENTION: Stay Informed and follow us on Google News!
Source: Legit.ng
