Dollar, Pound, Euro Exchange at New Rates in Official, Black Markets As Naira Depreciates

• The value of Nigerian currency has depreciated again against the US dollar in the foreign exchange market
• New data showed that the Nigerian currency fell against all currencies in the official and unofficial markets
• The latest data means that Nigerian currency ended the month of August with N28.56 loss despite CBN's interventions

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.

Naira closed on the foreign exchange (FX) market closed the month of August 2024 on a negative note as the naira recorded a loss against the dollar across markets.

In the official market, data from FMDQ securities showed that the naira depreciated in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, 30 August, to N1,598.56/$1.

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Friday's exchange rate reflects a 0.29% or N4.63 loss for the naira against the dollar, compared with the previous day’s rate of N1,593.93/$1.

Additionally, the naira lost N23 compared to the rate of N1,570/$1 quoted at the beginning of the month.

The local currency also performed poorly against the pound sterling and the euro in the official market on Friday.

The CBN data showed that the naira lost N7.48, settling at N2,106.05/£1, compared with the preceding day’s rate of N2,098.57/£1.

Against the euro, the naira depreciated to N1,772.09/€1, in contrast to Thursday’s rate of N1,765.80/€1.

This poor performance occurred despite an 11.1% or $17.28 million increase in the supply of FX in the spot market during the last trading session of the week, rising to $172.80 million from $155.52 million recorded the day before.

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Naira exchange rate at black market

In the same vein, the Nigerian currency depreciated against the dollar in the parallel market.

Traders told Legit.ng that one dollar settled at an exchange rate of N1,630/$1, reflecting a N10 depreciation compared with the previous day’s closing value of N1,620/$1

Abdullahi a BDC trader said:

"We are still relying on what we can get on the street; our rates are determined based on the demand in the market."

Nigeria's foreign reserves rise

Legit.ng earlier reported that Nigeria's foreign exchange (forex) reserves increased by $195.01 million to $32.64 billion, indicating that the market is expected to have more liquidity.

The recent accretion marked the fourth consecutive increase in foreign exchange reserves after a month of declines.

The reserves increased by $89.76 million the week before. Before this, it had increased by $10.76 million and $132.68 million.

Source: Legit.ng