CBN Updates Exchange Rates As Naira Crashes Against US Dollar, British Pound
- The value of the Nigerian currency fell once again in both the official and unofficial foreign exchange markets
- The naira's value in the parallel market remains stable, while in the official market, it depreciates by N1.80 against the US dollar
- The Nigerian currency also recorded a poor performance against the British pound but improved against the euro
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 Naira experienced a slight depreciation against the US Dollar on Friday, January 10, at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Data from the FMDQ Exchange showed that the Nigerian currency weakened by 0.12% or N1.80 to close at N1,543.03/$1, compared to the previous day’s rate of N1,541.23/$1.
Source: Getty Images
The dip in the naira's value is attributed to growing pressure on the domestic currency as the Central Bank of Nigeria’s (CBN) temporary access granted to Bureaux de Change (BDC) operators to purchase foreign exchange through the Electronic Foreign Exchange Matching System (EFEMS) nears its expiration.
The 42-day window, introduced in December 2024 to stabilise the naira, is set to close on January 19, 2025.
The expiration of the EFEMS window for BDCs is expected to test the resilience of the naira in the coming weeks.
Nair performance against other currencies
It was the same scenario for the naira against other foreign currencies as it depreciated significantly against the British pound, falling by N30.78 to trade at N1,889.29/£1, compared to Thursday’s rate of N1,858.51/£1.
However, it strengthened against the euro, gaining N5.48 to settle at N1,583.81/€1, up from the preceding session’s N1,589.29/€1.
Changes in the black market
In the parallel market, BDC traders spoke to Legit.ng revealed that the naira was exchanged at N1,655 on Friday.
Abdullah, a trader, said:
"There is not much movement for the naira in the forex market. I buy dollars at N1,640 and sell to those interested at N1,650 and N1,655. and this has been the case for days now."
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.
- CFA: N2.4157
- Yuan/renminbi: N210.29
- Danish krona: N212.25
- Euro: N1,583.81
- Yen: N9.7708
- Riyal: N410.7468
- South African rand: N80.76
- Swiss franc: N1,685
- Pounds sterling: N1,889.28
Top US firm predicts naira to dollar exchange rate by 2028
Legit.ng reported BMI, a subsidiary of Fitch Solutions, has predicted that the Nigerian naira will decline further to N1,993 per US dollar by 2028.
The research firm based its prediction on economic challenges, including Nigeria’s medical device industries, which rely on imports for over 95% of its needs.
The report, released on its website, highlighted that while Nigeria's economy is projected to rebound, structural weaknesses, including a persistent naira depreciation, will intensify import costs for essential healthcare supplies.
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Source: Legit.ng
