N1,631.17: Again, Naira Depreciates Against US Dollar, CBN Gives Pound, Euro New Exchange Rates

• The Nigerian currency has depreciated further against the dollar in both the official and unofficial forex markets
• This depreciation follows a reduction in foreign exchange transactions recorded by banks and official traders
• The Central Bank of Nigeria is expected to intervene in the market by selling dollars to Bureau De Change operators to lower the dollar rate in the black market

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 extended its depreciation against the United States dollar in the official foreign exchange market.

According to data from the FMDQ Securities Exchange, the naira dropped in value in the Nigerian Autonomous Foreign Exchange Market (NAFEM) to exchange at N1,631.17/$1 on Wednesday, October 30, 2024.

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Wednesday's exchange rate represents a slight depreciation of 0.04% or 72 Kobo compared with N1,630.45/$1, which was exchanged a day earlier.

The naira’s fall comes amid a decline in forex transactions from banks and authorised dealers.

The data shows that the value of forex transactions on Wednesday decreased by 46.9% or $113.61 million to $128.98 million from the $242.59 million recorded on Tuesday.

Naira rate against pound, euro

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

The CBN reports that the Nigerian currency gained against the pound sterling in the official market on Wednesday by N18.57 to trade at N2,143.40/£1 compared with the previous day’s rate of N2,161.97/£1.

While against the euro, it improved its value at N18.90 to quote at N1,782.07/€1 versus N1,800.97/€1 it quoted on Tuesday.

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Naira to dollar rate at black market

Meanwhile, traders told Legit.ng in the black market that the naira also depreciated against the dollar by N5

Abdulahii, a BDC trader, told Legit.ng.

"We exchanged one dollar at N1,745/$! compared with previous rate of of N1,740/$1."

CBN hopes for new naira-to-dollar exchange rate

Legit.ng earlier reported that the CBN revealed that Nigeria's foreign reserves had increased.

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

The increase would be a welcome development for the Central Bank of Nigeria in its fight to help the naira recover in the foreign exchange market.

Shortage of forex supply has always been a major reason the naira has come under intense pressure in both the black and official markets.

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

Source: Legit.ng