Naira Depreciates Against the Dollar as it Exchanges for N528

Naira Depreciates Against the Dollar as it Exchanges for N528

  • Naira depreciated against the dollar on Wednesday as the pound also appreciated against the Nigerian currency during the midday
  • The two foreign currencies continues to trade stronger than the naira which is about to have a sister currency created by the Central Bank of Nigeria
  • Nigeria's financial regulator is scheduled to launch eNaira, which is the digital form of the country's legal tender, in the next two months

The dollar appreciated against the naira on Wednesday, as the foreign currency takes back control amid Nigeria's move to make digital currency its official legal tender.

During the business hours of Wednesday, dollar gained against the naira, selling at N528 for one dollar in the midday at the parallel market.

Data obtained from Abokifx showed that the midday dollar exchange was higher than the N526 it traded in the morning, which is the same rate it closed Tuesday with.

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Naira Depreciates Against the Dollar as it Exchanges for N528
Naira exchanged for dollars. Photo: PIUS UTOMI EKPEI/AFP
Source: Getty Images

British currency rises as naira depreciates

The pound also closed strongly against the naira, as the British currency exchanged in the midday at N717 to one pound at the parallel market today.

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This is above the N716 to £1 it traded in the morning, and higher than the N715 the British pounds exchanged at the end of the business hour during the previous day.

How naira traded at the official exchange market

Although, on the only officially recognised foreign exchange platform, which is the Investors and Exchange window (NAFEX), on FMDQ, naira appreciated by 0.01%

Checks showed that the Central Bank of Nigeria-backed exchanged platform closed with N411.50 kobo to $1 at the end of business today, appreciating against its opening of N411.58 kobo.

CBN set guidelines for Nigeria's digital currency

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The Central Bank of Nigeria (CBN) has concluded plans on the implementation process of the country's digital currency adoption, eNaira.

The financial regulator said the issuance of the digital asset will only be issued and distributed by the apex bank. It was also reported that CBN can redeem and destroy the digital currency.

According to the guidelines, Nigerians will only be able to use the eNaira as payment option, while the digital currency will be a non-interest bearing asset.


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