New Exchange Rate as Naira Falls Against US Dollar, Pound, Euro in Official, Black Markets
- The value of the Nigerian currency dropped against the United States dollar in the foreign exchange markets
- In the official market, the naira fell by 0.16%, while in the unofficial market, also known as the black market, the naira recorded a loss of N5
- President Bola Ahmed Tinubu has promised that the Nigerian currency will perform stronger in 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 Nigerian currency, the naira, performed poorly against the dollar, euro, and British pound sterling in the forex market on Monday, January 6.
According to data from FMDQ securities, the value of the naira closed against the dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) at N1,536.58/$1.
Source: Getty Images
Monday's exchange rate represents a 0.16% or N2.53 depreciation compared to last Friday’s price of N1,534.05/$1.
It was a similar scenario in the parallel market on Monday, as the naira value dropped against the US dollar.
BDC trader Abdullahi told Legit.ng that the value of the naira dropped by N5.
"The market for the naira was not favorable, as it lost N5 of its value, exchanging at N1,655/$1 compared to Friday's rate of N1,650.
"It is now difficult to predict what to expect in the market, and our rates are determined by customer demand."
Naira against other foreign currencies
The CBN data shows that the naira exchange rate also fell against Monday's British pound sterling and the euro.
The apex bank stated that at the end of Monday's trading session, the naira exchanged against the pound sterling at N1,916.24/£1 compared to Friday's closing rate of N1,902.55/£1
Also, against the euro, the naira fell to N1,590.81/€1 from the previous rate of N1,579.52/€1.
Here is a snapshot of CBN naira exchange rates
- CFA: N2.41
- Yuan/renminbi: N209.69
- Danish krona: N213.23
- Euro: N1,590.81
- Yen: N9.76
- Riyal: N408.37
- South African rand: N82.54
- Swiss franc: N1,694.22
- Pounds sterling: N1,916.24
Tinubu promises for naira
There are high expectations that the naira will record a better performance in 2025 following the promises of President Bola Tinubu.
At his budget presentation, the president promised that the naira would recover and close to N1,500 by year-end.
However, this sentiment is not shared by prominent financial companies.
According to a new report by Lagos-based investment and research firm Afrinvest, titled "Beyond The Rhetorics: Transforming Reforms into Tangibles," the naira is projected to depreciate to a weighted fair value of N1,804.45.
Naira to remain stable
Ealier, Legit.ng reported that Muda Yusuf, director and CEO of the Centre for the Promotion of Private Enterprise (CPPE), said that the naira-dollar exchange rate will stabilise in 2025
Yusuf highlighted critical developments such as Nigeria’s foreign reserves exceeding $40 billion and anticipated further improvement in reserve accretion for the expected stability.
He also listed other factors that will make it happen.
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Source: Legit.ng
