New Exchange Rate as Naira Reverses Gain, Crashes by Over N90 against US Dollar in 24 Hours

• Nigerian currency has depreciated again against the United States dollar in the foreign exchange markets
• Latest data shows that the naira fell against the dollar in both the official and unofficial foreign exchange markets
• Naira performance is coming on the back of massive improvement following the CBN's recent 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 Naira value crashed against the US dollar in the official Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, September 12.

New data from FMDQ securities shows that the naira depreciated to N1,649.76/$1 at the close of business on Thursday.

The new exchange rate represents a massive depreciation of N91 compared to the previous day's closing rate of N1,558.75/$1.

Read also

Naira recovers near N1,500/$ as CBN officially adjusts exchange rates, traders happy

The naira on Monday, Tuesday and Wednesday had offered hope of a stronger currency before a completed reversal on Thursday.

The poor performance comes despite the market receiving a boost from the $900 million local dollar bond raise.

In the parallel market, the naira also lost N5 against the dollar on Thursday to quote at N1,660/$1 compared with the preceding day’s rate of N1,655/$1.

Naira against pound euro

It was, however, a different story for the Nigerian currency at the official window against the pound and the euro.

The CBN data showed that the naira appreciated against the pound Sterling by N57.49, settling at N2,067.96/£1, compared to N2,125.45/£1.

It also improved by N45.15 against the euro, closing at N1,748.85/€1, in contrast to Wednesday’s closing price of N1,794.00/€1.

Read also

Naira crosses new threshold as traders quote the dollar at higher rates in official window

CBN hopes for new naira-to-dollar exchange rate

Earlier, Legit.ng reported that the CBN revealed that Nigeria's foreign reserves had recorded an increase.

This came after the successful $500 million dollar bond issuance, which signifies investor confidence.

The increase would come as a welcome development for the CBN in its fight to help the naira recover in the foreign exchange market.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng