Again, Naira Crashes Against US Dollar, Pound in Official Forex Markets
- The value of Nigerian currency has appreciated against the United States dollar in the official forex markets
- The latest exchange rate marks another depreciation for the naira in all foreign exchange markets
- The CBN of Nigeria has released updated exchange rates of all foreign currencies against the naira
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 has lost more value against the United States dollar in both the official and black foreign exchange markets.
According to data from FMDQ securities, the naira in the Nigerian Autonomous Foreign Exchange Market (NAFEX), the official market, closed at the N1,676.90/$1 exchange rate on Monday, November 5, 2024.
Source: Getty Images
Monday's exchange rate is a reversal of the positive performance it opened the month on Friday, November when one dollar sold for N1,666.72/$1.
The naira's poor performance comes as forex transactions dropped to $79.47 million on Monday, 15.7% or $14.75 million lower than the $94.22 million recorded in the preceding trading day.
With the festive season approaching, there will be higher demand for the forex from Nigerians and businesses.
Surprisingly, it was a different story for the naira in the unofficial market, also known as the black market.
Abudulahhi, a BDC trader, revealed that the naira was appreciated against on Monday by N10.
He told Legit.ng:
"On Monday we sold the dollar at N1,720/$1, in contrast to the previous value of N1,730/$1."
Naira against pound, euro
Furthermore, the latest data from the CBN showed that naira weakened against the British Pound Sterling yesterday in the official market by N3.38 to exchanged at N2,160.63/£1 compared with the previous trading day’s N2,157.25/£1.
While against the euro, it depreciated by N1.61 to trade at N1,816.40/€1 versus N1,814.79/€1.
Snapshot of the latest exchange rate
- Pounds Sterling: N2,160
- Euro: N1,816
- Swiss Franc: N1,929
- Yen: N10.9765
- CFA: N2.7402
- Riyal: N443.3
- Danish Krona: N243.5
Lagos Chamber predicts new exchange rate
Earlier, Legit.ng reported that the Lagos Chamber of Commerce and Industry (LCCI) predicted that the value of the Nigerian currency would improve against the US dollar.
Gabriel Idahosa, the President of LCCI, gave the prediction when he addressed journalists about the state of the economy in Lagos.
The chamber's president believes this rate is achievable if the CBN reviews the current free-floating exchange rate.
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Source: Legit.ng
