Naira Depreciates Against the US Dollar in the Official Market, Rises in Black Markets
- There is a new naira-to-dollar exchange rate in the official and unofficial foreign exchange markets
- The Nigerian currency appreciated in the black market but depreciated against the dollar in the official market
- There are high expectations that the naira will finish the year strongly as the federal government targets an exchange rate of N1,400 to the dollar by 2025
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 value of the naira, the Nigerian currency, recorded a mixed performance against the US dollar in the foreign exchange markets.
According to data from the Central Bank of Nigeria, the naira in the Nigerian Foreign Exchange Market (NFEM) depreciated to N1,533.56 per dollar on Monday, December 16.
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Monday's exchange rate indicates a slight loss for the naira on the first trading day of the week, compared to the N1,533.27 per dollar rate at which the market closed on Friday, December 13.
While FMDQ reports that in the Nigerian Autonomous Foreign Exchange Market(NAFEM), the naira depreciated to N1,545.1 per dollar on Monday from N1,533 per dollar closed last Friday.
However, it was a different story for the parallel market as the naira appreciated to N1,660 per dollar from N1,662 per dollar last weekend, Vanguard reports.
Checks by Legit.ng show that the pound sterling and the euro were exchanged at N2,110 and N1,770 in the black market, respectively.
Here is a snapshot of naira rates in the official market
Based on CBN published rates, here is a breakdown of naira's performance against other foreign currencies in the NAFEM market.
- US dollar - N1,533.57
- Pounds sterling - N1,940.88
- Euro - N1,608.87
- Swiss franc - N1,715.78
- Yen - N9.95
- CFA - N2.46
- Riyal - N408.13
- Danish krona - N215.66
- Yuan/Renminbi - N210.54
CBN introduces EFEM to help naira
Earlier, Legit.ng reported that the Central Bank of Nigeria has introduced new guidelines for foreign exchange trading through its Electronic Foreign Exchange Matching System (EFEMS).
The new system, which the CBN hopes will create transparency in the market and eliminate the power of speculators, is designed to improve the efficiency of foreign exchange transactions.
A breakdown of the key points to note about the new EFEMS has been provided.
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Source: Legit.ng
