New Exchange Rate: Dollar Crashes by Over N100 against Nigerian Currency

• The CBN's new EFEM system has seen the naira continue to appreciate against the US dollar in foreign exchange markets
• The latest exchange rate information showed that the dollar's value crashed by over N100 in just one trading day
• Nigerians are hoping that the strong performance of the country's currency will continue across all forex markets

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 currency, the naira, continues to perform strongly in foreign exchange markets, following the newly introduced electronic forex trading framework by the Central Bank of Nigeria (CBN).

According to CBN’s exchange rate portal data, the dollar crashed to N1,567 in the Nigerian Foreign Exchange Market (NFEM) window on Thursday, November 5.

Thursday's exchange rate represents a 2.5% or N41 appreciation for the naira compared to N1,608 quoted on Wednesday, December 4.

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The improved forex supply aided the performance of the naira in the foreign exchange markets.

FMDQ reported that authorised forex dealers carried out $286.33 million transactions on Thursday.

It was the same story for the naira in the black market, as BDC traders who spoke to Legit.ng said the dollar has crashed significantly.

BDC trader Abudulahhi said:

"The naira-dollar exchange rate is very volatile right now. I can't provide an exact figure. Currently, I am buying one dollar at a fixed rate of N1,620, while my selling rate depends on how much the buyer wants."

Snapshot of official naira exchange rates

• CFA: N2.63
• Yuan/Renminbi: N221.97
• Danish Krona: N226.77
• Euro: N1691.31
• Yen: N10.68
• Riyal: N429.33
• South African Rand: N88.84
• Swiss Franc: N1819.06
• Pounds Sterling: N2044.87

CBN introduces revised guidelines for NFEM

Earlier, Legit.ng reported that to strengthen the governance and transparency of Nigeria’s forex market, the CBN introduced revised guidelines for the NFEM.

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Again, CBN reduces customs exchange rate to clear goods at ports

Under the new framework, authorised dealers are required to facilitate FX transactions for businesses and individuals, ensuring adherence to regulations.

The CBN also tasked these dealers with conducting their due diligence, providing transparent pricing, and offering market access through digital solutions.

Source: Legit.ng