British Pound, Euro Crashes As Naira Gains in Black Market, BDCs Give New Exchange Rate

• Nigerian currency has appreciated against the British pound and the euro in the foreign exchange market
• BDC traders are selling the pound and euro at a new exchange rate as the naira appreciates as the country celebrates Eid-ul-Adha
• The official foreign exchange markets will be on holiday on Monday and Tuesday to resume on Wednesday

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.

Bureau De Change (BDC) operators in Nigeria have quoted new exchange rates for the British pound and euro as the country marks Eid-ul-Adha.

Traders who spoke to Legit.ng revealed that the British pound sells for N1,850 in the black market, also known as the parallel market, on Sunday, June 16, 2024.

Read also

CBN reduces Customs exchange rate to clear goods at ports, airports after Eid-el-Kabir holidays

Meanwhile, the euro was exchanged at N1,580 on the black market.

The new exchange rates are an improvement compared to the N1,890 and N1,610 quoted as the buying rates for the British pound and euro, respectively, on Friday, June 14.

A BDC trader, Abdullahi Lagos, told Legit.ng that the new exchange rate is due to the less pressure in the market.

He said:

"Normally during holidays, the demand for foreign currencies will reduce and this will help naira exchange rate.

"In the week ahead, I expect changes, and it will mainly depend on the decision of the Central Bank of Nigeria. If the market is short of foreign currencies, we will increase the rates. If there is supply and less demand, naira will appreciate."

Read also

Naira depreciates against dollar in official, black markets amid Eid-el-Kabir celebrations

Naira at official market against dollar

It was the same story for the naira in the official market against the dollar.

FMDQ Securities data shows that the value of the naira closed strong against the dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Legit.ng reported that the naira fell on Friday by 0.44%, or N6.48, to close at N1,482.72/$1, in contrast to the previous day’s N1,476.24/$1.

The official market will resume on Wednesday after the public holiday.

CBN’s foreign reserves rise by over $300m in 10 days

Earlier, Legit.ng reported that the foreign reserves had increased significantly in the first ten days of June.

The rise in FX reserves will give CBN more firepower to intervene in the forex market and ensure the stability of the naira exchange rate.

Dollar supply has always been a major reason for naira depreciation due to demand pressure from companies and travellers.

Read also

Currency dealers, traders, others quote new exchange rates as naira crashes slightly in all markets

Source: Legit.ng