CBN Releases New Exchanges As Naira Appreciates Against Dollar, Falls to Pound, Euro

• The naira recorded a mixed performance in the foreign exchange market, appreciating against the dollar and depreciating against other currencies
• Data from the Central Bank of Nigeria (CBN) shows that the naira closed against the pound and euro weaker
• Analysts have asked the CBN to intervene by releasing forex into the market to forestall the total collapse of the naira

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 value of the Nigerian currency, the naira, improved against the United States dollar in the official foreign exchange markets.

Data from the Central Bank of Nigeria showed that at the last trading session of the week, the naira closed N1,611.08/$1.

Friday's exchange rate is a 1.2% or N18.86 appreciation against the dollar when compared to N1,629.94/1 achieved a day earlier.

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Why the naira improved against dollar

The value of the naira strengthened on Friday at the currency market after the dollar weakened in the international scene, giving currencies like the naira a sigh of relief.

Also supporting this are efforts by the CBN to make more forex available in the market, which helped ease pressure, Punch reports.

Naira against other currencies

However, the Nigerian currency depreciated against the British pound sterling at the spot market during the session by N5.57 to settle at N2,090.58/£1 compared with Thursday’s closing price of N2,085.01/£1.

The naira also lost N10.18 against the euro to sell for N1,815.82/€1, in contrast to the preceding day’s N1,805.64/€1.

• CFA franc: N2.69
• Yuan/renminbi: N218.20
• Danish krona: N243.17
• Euro: N1815.82
• Japanese Yen: N11.19
• Saudi Riyal: N424.02
• South African Rand: N83.09
• Swiss franc: N1963.07
• Pounds Sterling: N2090.58
• Dollar: N1591.85

Naira rate in unofficial markets

In the parallel market, also known as the black market, it was the same story for the naira against the dollar.

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Abudullahi a BDC trader told Legit..ng:

"We sold the dollar on Friday at N1,615, a N10 difference from the previous rate of N1,625. The euro was sold at N1,760, while the British pound sterling was sold at N2,038."

"We are expecting the market to be calmer this week, with the dollar dropping to N1,600."

Naira’s crash: Analysts ask for CBN intervention

Earlier, Legit.ng reported that analysts asked the CBN to intervene by releasing forex into the market to forestall the total collapse of the naira.

They say the apex bank should inject more forex into the market to improve liquidity and stabilise the naira.

However, Chatham House, a UK think-tank, warned against strengthening the naira, saying the local currency is now more competitive in the market.

Chatham House noted that after its depreciation, the naira is better positioned to help the Nigerian economy progress.

Proofreading by Nkem Ikeke, copy editor at Legit.ng.

Source: Legit.ng