Again, Naira Depreciates in Value Against US Dollar Euro

• The value of the naira has depreciated further against the US dollar in the foreign exchange markets
• New data from FMDQ Securities shows that the naira lost 0.12% of its value on Friday in the official market
• It was a different story for the naira in the black market, as traders confirmed to Legit.ng an appreciation

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 naira has weakened further against the US dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Data shows that the naira depreciated to N1,652.25/$1 after the close of trading on Friday, November 15,

Friday's exchange rate represents a 0.12% or N2.05 loss in value compared to N1,650.20/$1, the naira exchanged in the previous session.

Market data shows that on Friday, there was an increase in forex turnover, rising to $296.63 million from Thursday’s $214.73 million.

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Analysts attributed the market pressure to a liquidity crunch and heightened seasonal demand, exacerbated by reduced interventions from the Central Bank of Nigeria (CBN).

Naira to pound, euro

Data from the CBN also showed that the naira appreciated against the British pound sterling but weakened against the euro.

The naira closed on Friday at N2,097.11/£1, a slight gain from N2,100.54/£1 recorded on Thursday.

Against the euro, however, the naira depreciated to N1,749.81 on Friday from the previous rate of N1,746.36/€1.

Snapshot of latest exchange rates

• Pounds sterling: N2,097.11
• Euro: N1,749.81
• Swiss Franc: N1,866.14
• Yen: N10.68
• CFA Franc: N2.66
• Riyal: N441.59
• Danish Krona: N234.58

In the parallel market, traders told Legit.ng that the naira recorded a strong performance against the US dollar.

Abudulahhi, a BDC trader said:

"The market is under pressure but on Friday, the naira appreciated by N5 against the dollar, closing at N1,740/$1, compared to N1,745/$1."

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CBN slashes customs FX rates to clear goods at ports after naira rises against dollar

Top US firm predicts naira to dollar exchange rate

Earlier, Legit.ng reported that US-based research firm BMI predicted a new exchange rate for the naira against the dollar in the years ahead.

BMI said it expected the naira to further depreciate in the foreign exchange market to nearly N2,000 a dollar

The Nigerian currency currently exchanges in the official and black markets above N1,681 against the US dollar.

Source: Legit.ng