Naira Falls To A New Low Against Dollar, Euro, Pound At Official Market As Politics Takes Centre Stage

Naira Falls To A New Low Against Dollar, Euro, Pound At Official Market As Politics Takes Centre Stage

  • It seems politicking in the country is having an adverse effect on the Naira's performance against other foreign currencies
  • For the second straight day, the Naira value depreciated to the United State dollar, Euro, and also British pounds at the official market
  • Several analysts has also predicted a further depreciation of the Naira in the coming months leading to the election over dollars scarcity

Nigerian currency, for the second straight day, has recorded a poor performance against all foreign currencies.

This happens as the ruling All Progressives Congress (APC) in Abuja holds its presidential primary.

Data obtained from FMDQ securities where Naira is officially traded showed that in the investors and exporters market, the Naira value dropped N420.75 on Tuesday, 7 June.

Naira Dollar, Euro, Pound , Politics
Movement of forex reserves since April 11 Credit: CBN
Source: Facebook

The exchange rate on Tuesday indicates a 50 kobo drop in value when compared with the rate of N420.25 it exchanged to the dollar on Monday, June 6.

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The poor performance of the Naira came as a total of $113.12 million was exchanged among the participants during trading which includes banks.

Similarly, data from the Central Bank of Nigeria shows that on Monday data showed Nigerian currency value dropped further against the Pound Sterling and the Euro.

Naira value fell to the British pounds by 59 kobos to trade at N522.53/£1 compared to the previously traded rate of N521.94/£1 and against the Euro, the Nigerian currency depreciated by 55 kobo to sell at N445.97/€1 in contrast to last Friday’s value of N445.42/€1.

Foreign reserves deplete

Meanwhile, CBN data has revealed that Nigeria's foreign reserve is now at $38.42 billion.

This means the reserve has dropped by $1.4 billion since the start of May 2022 when the reserves stood at $39.42 billion.

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Ex-CBN Head criticises Emefiele's decision to ban BDC operators from selling forex

Meanwhile, Obadiah Mailafia, a former deputy governor of the Central Bank of Nigeria (CBN), has criticised the decision of the apex bank to stop providing foreign exchange to bureau de change operators.

Mailafia said the decision could weaken the value of the naira against the dollar and other foreign currencies, as there might be a scarcity of forex.

With his experience of the banking system in Nigeria, Mailafia said the banks might hoard forex for themselves and sell at a high cost to buyers whenever the lenders want.


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