CBN Releases Latest Naira to Dollar Exchange Rates As Official, Black Markets Converge
- The value of the Nigerian currency in both the official and unofficial foreign exchange markets is now nearly equal
- The latest data shows that the US dollar is trading at an exchange rate close to ₦1,500 in both forex markets
- The CBN, in its latest Monetary Policy Committee (MPC) meeting, has provided insights into the benefits of foreign exchange stability
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, has recorded a strong performance against the US dollar in the black market and also in the Nigerian Foreign Exchange Market (NFEM) window.
According to data from the Central Bank of Nigeria, the naira appreciated against the United States dollar to N1,509.04/$1.
Source: Getty Images
Thursday's exchange rate shows a 53 Kobo or 0.04% improvement increase in the US dollar compared to the previous day's closing rate of N1,509.57/$.
Naira pound, euro
It was a different story for the naira against the pound sterling and the euro in the official market.
Naira lost 63 kobo against the pound sterling in the official market during the session to sell for N1,901.09/£1 compared with the preceding session’s N1,900.46/£1.
While against the euro, it lost N1.27 to trade at N1,574.83/€1 versus Wednesday’s N1,576.10/€1.
Snapshot of naira rates in official market
Based on CBN published rates, here is a breakdown of naira's performance against other foreign currencies in the NAFEM market.
- CFA - N2.40
- Yuan/renminbi - N207.16
- Danish krona - N211.09
- Euro - N1,574.83
- Yen - N9.98
- Riyal - N402.36
- South African rand - N81.26
- Swiss franc - N1,671.32
- Pounds sterling - N1,901.09
- US dollar - N1,509.04
Source: Getty Images
Naira improves against dollar at black market
In the parallel market, also known as the black market, the naira improved against the dollar, pound and also in the euro.
Traders who spoke to Legit.ng confirmed that the US dollar buying rate is now below N1,500.
"We sold the dollar at N1,510, a difference of N10 from the previous day's rate of N1,520. We buy the dollar from Nigerians at N1,490. For the pound and euro, they were sold at N1,890 and N1,550, respectively."
CBN speaks on naira exchange rate
The CBN, in its communique after the Monetary Policy Committee (MPC) meeting on Thursday, outlined the benefits of a stronger naira.
According to the MPC, the narrowing gap between the NFEM and the Bureau de Change (BDC) rates is a key achievement.
The Committee urged the Bank to sustain efforts to enhance market liquidity and acknowledged recent initiatives such as the Electronic Foreign Exchange Matching System (B-Match) and the Nigerian Foreign Exchange Code.
Part of the communique reads:
"The MPC believes that, following major policy measures undertaken by the monetary and fiscal authorities, the flow of foreign direct and portfolio investments, as well as diaspora remittances, is expected to increase as investor and stakeholder confidence improves."
Rewane says naira undervalued
Legit.ng reported that Bismarck Rewane, chief executive officer of Financial Derivatives Company, has restated that the naira current exchange rate is undervalued by 27.81%.
Rewane also said that he expects the naira at N1,550/$, while the black market rate is expected to close at N1,600/$ in the parallel market by Q1 2025.
The renowned economist also spoke on the importance of forex inflows from different sources, such as the creative industry, to stabilise the naira.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
