CBN Releases New Exchanges As Naira Appreciates Against Dollar, Falls to Pound, Euro
- The naira recorded a mixed performance in the foreign exchange market, appreciating against the dollar and depreciating against other currencies
- Data from the Central Bank of Nigeria (CBN) shows that the naira closed against the pound and euro weaker
- Analysts have asked the CBN to intervene by releasing forex into the market to forestall the total collapse of the naira
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 Nigerian currency, the naira, improved against the United States dollar in the official foreign exchange markets.
Data from the Central Bank of Nigeria showed that at the last trading session of the week, the naira closed N1,611.08/$1.
Source: Getty Images
Friday's exchange rate is a 1.2% or N18.86 appreciation against the dollar when compared to N1,629.94/1 achieved a day earlier.
Why the naira improved against dollar
The value of the naira strengthened on Friday at the currency market after the dollar weakened in the international scene, giving currencies like the naira a sigh of relief.
Also supporting this are efforts by the CBN to make more forex available in the market, which helped ease pressure, Punch reports.
Naira against other currencies
However, the Nigerian currency depreciated against the British pound sterling at the spot market during the session by N5.57 to settle at N2,090.58/£1 compared with Thursday’s closing price of N2,085.01/£1.
The naira also lost N10.18 against the euro to sell for N1,815.82/€1, in contrast to the preceding day’s N1,805.64/€1.
Source: Getty Images
- CFA franc: N2.69
- Yuan/renminbi: N218.20
- Danish krona: N243.17
- Euro: N1815.82
- Japanese Yen: N11.19
- Saudi Riyal: N424.02
- South African Rand: N83.09
- Swiss franc: N1963.07
- Pounds Sterling: N2090.58
- Dollar: N1591.85
Naira rate in unofficial markets
In the parallel market, also known as the black market, it was the same story for the naira against the dollar.
Abudullahi a BDC trader told Legit..ng:
"We sold the dollar on Friday at N1,615, a N10 difference from the previous rate of N1,625. The euro was sold at N1,760, while the British pound sterling was sold at N2,038."
"We are expecting the market to be calmer this week, with the dollar dropping to N1,600."
Naira’s crash: Analysts ask for CBN intervention
Earlier, Legit.ng reported that analysts asked the CBN to intervene by releasing forex into the market to forestall the total collapse of the naira.
They say the apex bank should inject more forex into the market to improve liquidity and stabilise the naira.
However, Chatham House, a UK think-tank, warned against strengthening the naira, saying the local currency is now more competitive in the market.
Chatham House noted that after its depreciation, the naira is better positioned to help the Nigerian economy progress.
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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
