Naira Crashes Against US Dollar in Official, Black Forex Markets as Rivers Crisis Adds Pressure
- The naira has dropped further against the US dollar and other currencies in the foreign exchange markets
- New CBN data shows that the official market fell by 0.27% or N4.14 in the official market and also fell in the black markets
- The forex pressure on the domestic currency intensified after attacks on oil facilities in Rivers state
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 depreciated further against the US dollar and euro in both the official and unofficial foreign exchange markets.
Data from the Central Bank of Nigeria showed that by the end of trading on Tuesday, March 18, the naira had declined to N1,536.12 against the dollar.
Source: Getty Images
Tuesday's exchange rate showed that naira lost 0.27% or N4.14 of its value when compared to N1,531.98/$1 reported on Monday, March 17.
It was the same outcome for the naira against the euro in the official market.
Data showed that the naira depreciated against the euro in the official market yesterday by N5.05 to settle at N1,673.50/€1 versus the preceding session’s N1,668.46/€1.
However, the naira appreciated against the Pound Sterling by N34.72 to trade at N1,949.89/£1 compared with the previous day’s N1,984.61/£1.
In the black market, Bureau de Change operators confirmed that the dollar was sold at a higher rate.
Source: Getty Images
Abdulahhi, a BDC trader gave a breakdown of the exchange rate to Legit.ng:
"I sell the dollar at N1,585/$1 and buy at N1,568. For the pound sterling, I buy at N2,000 and sell at N2,060. As for the euro, my customers buy at N1,690 and sell to me at N1,640."
Further checks on fintech apps like Chipper Cash showed that the naira had depreciated further, exchanging at N1,784.5 at the time of writing.
Below is a snapshot of CBN's exchange rate against other foreign currencies:
- CFA Franc: N2.54
- Chinese Yuan (Renminbi): N212.08
- Danish Krone: N224.30
- Euro: N1,673.50
- Japanese Yen: N10.32
- Saudi Riyal: N408.71
- South African Rand: N84.63
- Swiss Franc: N1,743.15
- Pound Sterling: N1,949.89
Naira under pressure
The naira is expected to come under increased pressure following attacks on oil facilities in Nigeria’s Niger Delta region, a development that could affect the country’s foreign exchange earnings.
Additionally, reports indicate that Nigeria is facing challenges in selling some of its March crude oil production on the international market.
ABCON sends a message to CBN
Earlier, Legit.ng reported that Aminu Gwadabe, president of the Association of Bureau De Change Operators of Nigeria (ABCON), called on the CBN to resume direct sales of dollars to traders.
He revealed that commercial banks are not selling to them and that the apex bank's intervention is needed for naira stability.
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Proofreading by Nkem Ikeke, copy editor at Legit.ng.
Source: Legit.ng
Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.
Nkem Ikeke (Copy editor) Nkem Ikeke is currently a copy editor who also writes for the politics and current affairs desk on weekends. She holds a Bachelor of Arts in Mass Communication degree from the University of Nigeria, Nsukka (2010), and has over 10 years of work experience in the media industry (Reporter, News Agency of Nigeria). Email: n.ikeke@corp.legit.ng
