Traders Quote New Exchange Rate As Naira Crashes Again Against US Dollar, Pound, Euro

Traders Quote New Exchange Rate As Naira Crashes Again Against US Dollar, Pound, Euro

  • The value of Nigerian currency has crashed again in the official and unofficial foreign exchange markets
  • Latest data shows that the naira depreciated by 0.71% in the official market and recorded a loss of N10 in the black market
  • The Central Bank of Nigeria has a lot of work on its hands to find a solution to the current forex crisis

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 Nigerian naira has suffered another depreciation against the United States dollar in both the official and parallel foreign exchange markets.

According to FMDQ securities data, naira closed at N1,532.28/$1 at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, July 9.

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Naira reverses gain, falls by N71.91 in 24 hours against US dollar, traders give new exchange rate

Naira to dollar exchange rate trends
The value of Nigeria's naira continues to depreciate Photo credit: Bloomberg/contributor
Source: Getty Images

Tuesday’s rate indicates that the naira’s value depreciated by 0.57% or N8.43 against the US Dollar in the official market compared to the previous day’s N1,523.85/$1.

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The naira’s poor performance happened despite an improvement in the supply of FX into the official market.

Banks, companies and other players in the official window on Tuesday exchanged $188.19 million, a 35.7% or $54.73 million increase from the $133.46 million recorded on Monday.

Naira against the pound, euro

It was the same scenario for the naira in the official market for the British pound and the euro.

CBN data shows that the naira declined in value against the pound sterling in the official market by N22.54 on Tuesday, exchanging at N1,957.78/£1 compared with the previous day’s N1,935.24/£1.

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CBN moves to crash dollar, sells over $122m to 46 authorised dealers, new exchange rate emerges

Against the euro, the naira depreciated by N16.28 to finish at N1,653.42/€1, in contrast to the preceding day’s N1,637.14/€1.

Naira to dollar black market

The fall of the naira continued in the black market as traders told Legit.ng that one dollar is sold at N1,540/$1

Musa, a BDC trader, said:

"You know we are working without CBN backing. The demand for dollars on the street and how much we are able to get determine our rates."

CBN stops BDC funding

Earlier, Legit.ng reported that the CBN reportedly stopped funding for Bureau de Change Operators.

The move aims to test CBN’s reform template and minimise quick fixes in the FX market.

The CBN is reportedly reviewing significant policies to strengthen the implementation or tweak its reforms.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng

Authors:
Dave Ibemere avatar

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.