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.
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.
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.
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.
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Source: Legit.ng
