Naira Rises: British Pound Sterling Crashes at Official, Black Market
- The British pound dropped below N2,000 in both Nigeria’s official and black market rates
- Checks showed that the latest exchange closed the pound sterling gap in the forex market
- The Central Bank of Nigeria reforms were key to stabilizing the naira exchange rate in all markets
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The British pound sterling has fallen below the N2,000 mark in both Nigeria’s official and black market exchange rates,
Data from the Central Bank of Nigeria showed that as of Wednesday, November 12, the naira in the Nigerian Foreign Exchange Market (NFEM) exchanged at N1901.40,
The latest rate is a massive improvement compared to over N2,000 it exchanged some weeks ago.
Source: Getty Images
Similarly, in the parallel market, also known as the black market, the British pound sterling has dropped below N2,000.
Traders told Legit.ng on Wednesday that the naira has improved against the pound sterling.
Abudulahhi a BDC trader gave the latest exchange rate as follow:
“The black market recorded a buying rate of N1,885/£1 and a selling rate of N1,910/£1. The market has changed in recent weeks, and I won’t be surprised if the pound falls even lower.”
Naira against dollar
Equally, the naira has appreciated against the US dollar in all FX market although it fell slightly on recent trading.
The value of the naira depleted against the dollar by N1.42 or 0.09% to N1,438.71/$1 on Tuesday from the N1,437.39/$1 it was exchanged a day earlier.
In the GTBank FX counter, the naira fell by N2 to settle at N1,444/$1 versus the preceding session’s rate of N1,442/$1.
At the parallel market, it maintained stability against the United States currency at N1,455/$1.
Source: Getty Images
Why naira fell against dollar
The naira’s slight gain came amid continued pressure in the foreign exchange market, largely driven by reduced dollar supply from the CBN.
Data from Coronation Merchant Bank’s research unit showed that foreign exchange inflows dropped by about 14 percent last week to $899 million, down from $1.04 billion recorded the previous week.
Despite the decline, analysts believe the naira may remain relatively stable as the CBN continues its interventions to support the local currency, aided by a steady rise in external reserves, which increased to $43.366 billion from $43.348 billion.
CBN reduces customs duty rate
Legit.ng earlier reported that the Central Bank of Nigeria adjusted the customs exchange rate downward, effectively lowering the cost of importing goods into the country.
Data from Nigeria’s trade portal show that the CBN revised the exchange rate for import duty calculations to N1,546.86 per dollar.
The apex bank stated that the new rate would remain in effect until the completion of import transactions and clearance processes by the importer.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
