New Exchange Rate As Naira Reverses Gain, Falls Against US Dollar in Official and Black Market
- The Nigerian currency free fall has continued in the foreign exchange market against the US dollar and other currencies
- New data shows that the naira in the official market fell by 2.4%, while in the black market, the naira dropped by N5
- There are concerns that the emergence of Donald Trump as the US president might affect the naira due to his "America First" policies
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The Nigerian naira has dropped in value against the US dollar at the official (Nigerian Autonomous Foreign Exchange Market).
Data obtained from FMDQ securities, where naira is officially traded, showed that the Nigerian currency closed at N1,678.87 per dollar on Friday, November 8, 2024.
Source: Getty Images
Friday's exchange rate is 2.4% or N39.37 from the preceding day’s N1,639.50/$1.
The fall of the naira happened despite an improvement in the supply of forex to the spot market during the session.
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The turnover on Friday increased by 473.1% or $1,158 billion to $1.403 billion from the $244.96 million recorded in the previous trading session.
Abudulahhi, a BDC trader, told legit.ng that the fall of the naira story was the same for the naira in the black market.
His words:
"The naira fell by N5 against the US dollar, exchanging at N1,735 on Friday. The change is attributed to traders being conscious of exchange rate fluctuations."
CBN's latest naira vs other foreign currencies exchange rates
- Pounds Sterling: N2,160.4
- Euro: N1,796.6
- Swiss Franc: N1,904.5
- Yen: N10.9
- Riyal: N443.5
- Danish Krona: N240.8
- Yuan/Renminbi: N233
Fitch rates naira performance in FX markets
Earlier, Legit.ng reported that Fitch Ratings has expressed caution about the stability of Nigeria's foreign exchange market despite CBN's several assurances.
The agency believes that the Central Bank of Nigeria and other efforts have yet to yield a positive result.
There is a glimmer of hope for CBN as Nigeria’s gross foreign exchange reserves rose to $39 billion in October.
Fitch forecasts FX reserves to rise to 6.1 months of current external payments by the end of 2024.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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Source: Legit.ng
