Dollar Crashes in Black Market As CBN Releases New Exchange Rates for Pound, Euro

• The value of Nigerian currency has improved against the US dollar in the unofficial foreign exchange market
• The naira also improved in value in the Nigerian Autonomous Foreign Exchange Market, which is the official market
• The CBN has also provided naira performance against other foreign currencies, which include the euro and pound

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 appreciated N1,660 per dollar in the parallel market on Tuesday, October 15, 2024.

Traders who spoke to Legit.ng on Tuesday confirmed the new exchange rate and said it is a massive improvement.

Abudulahhi, a currency trader, said:

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"Yes, the dollar has crashed. I sell at N1,670 and N1,680 depending on the buyer. If he is my customer, I can sell for N1,660."

Another trader on Airport Road, Musa, added:

"The dollar is dropping. Last week, I sold at N1,700; today, I can sell for N1,660."

The naira also improved in the official market as data from FMDQ showed that exchange rate for NAFEM fell to N1,552.92 per dollar from N1,641.27 per dollar on Friday last week, indicating N88.35 appreciation for the naira.

However, the margin between the parallel market and the NAFEM rate is still very wide at over N100.

CBN releases new exchange rates

Meanwhile, the Central Bank of Nigeria has released a new exchange rate for the naira against the euro and the British pound sterling.

According to CBN data, the pound is exchanged at N2089.61/£1, while the euro is sold at N1,749.12/€1

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Snapshot of current exchange rates according to CBN

• Pounds sterling: N2,089.61
• Euro: N1,749.12
• Swiss franc: N1,856.49
• Yen: N10.6972
• CFA: N2.65
• Riyal: N426.90
• Danish krone: N234.41
• Yuan/Renminbi: N226.12
• South African rand: N91.14

Black market rates on Tuesday

• 1 USD - N1,660
• 1 GBP- N2,120.954
• 1 EUR- N1,816.427
• 1 CAD - N1,197.590

There is hope for the naira

Legit.ng earlier reported that the US Federal Reserve has decided to lower interest rates, and this will weaken the United States dollar.

The decision has strengthened the Nigerian currency in the foreign exchange market.

Economist says that the US Federal Reserve's decision will also help attract more investment into Nigeria and help naira perform better only if...

Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

Source: Legit.ng