Again, Naira Depreciates, Traders, CBN Give New Exchange Rates in Official, Black Markets

• The Nigerian currency has depreciated against the United States dollar in the official, black foreign exchange market.
• New exchange rate data showed that the naira recorded a poor performance as dollar supply drops
• The new exchange rate is a big blow to the Central Bank of Nigeria's push to improve the naira's value across all foreign exchange markets

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 currency, the naira, lost some of its value against the United States dollar in both the official and black foreign exchange markets on Monday, October 7, 2024.

According to data from FMDQ securities, the naira in the Nigerian Autonomous Foreign Exchange Market (NAFEX), which is the official market closed at N1,635.15/$1 exchange rate on Monday.

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Dealers quote dollar at high rates in official, parallel markets as naira crashes

The exchange rate on Monday is 0.24% or N3.94 against the dollar compared to the previous Friday's closing rate of N1,631.21/$1.

The platform also revealed that during trading on Monday, the value of FX transactions declined by 47% or $113.12 million to $126.24 million from $239.36 million achieved in the last trading session.

Naira against pound, euro

However, it was a different story for the naira in the official market compared to the euro and British pound sterling.

New data shows that the naira improved its value against the euro in the official market on the first trading session of the week by N41.15 to quote at N1,788.96/€1 versus the preceding day’s N1,830.11/€1.

Against the British pound sterling, the naira exchange rate stood firm, closing at N2,175.44/£1, the same rate as the previous session.

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BDC reports changes in exchange rate as naira loses to dollar in parallel market

Naira performance in the forex markets

Abdulahi, a BDC trader, told Legit.ng that the naira in the parallel or black market dropped in value against the US dollar by N5, trading at N1,675/$1 on Monday, October 7, compared to the preceding session's rate of N1,670/$1.

He said:

'This week seems like it will be tough for the naira; the market is already dry going into the new week.'"

CBN sells dollar to BDCs

In a related development, Legit.ng reported that Central Bank of Nigeria again announced another round of dollar sales to licensed Bureau De Change Operators.

The move was part of the apex bank's efforts to halt the depreciation of the naira in the foreign exchange markets.

The CBN earlier fixed exchange rate limit for the BDCs when reselling cheap dollars to Nigerians.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng