New Exchange Rate As Naira Crashes Against US Dollar
- The CBN has released the latest naira exchange rates against the US dollar in the foreign exchange markets.
- Data shows that the naira began the new month of May trading similarly to previous months against major foreign currencies
- The CBN also published the latest exchange rates for the British pound sterling and the euro against 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 Nigerian currency, the naira, depreciated slightly against the United States dollar in the official market.
Data from the CBN showed that the Nigerian Foreign Exchange Market (NFEM), the naira closed at N1,606 per dollar at the end of trading on Friday, April 4.
Source: Getty Images
Friday's exchange rate is a 0.24% depreciation for the naira when compared to the previous day's closing rate of N1,602 recorded in the official market.
The CBN revealed that intra-day trading fluctuated between a high of N1,606.5/$1 and a low of N1,600/$1 on Friday..
This compares to Thursday's intra-day high and low of N1,603.5/$1 and N1,580./$1, respectively, reflecting minimal volatility and a narrow trading band.
The average exchange rate stood at N1,602.69/$1 on Friday, slightly higher than the N1,599.4/$1 recorded on Thursday, according to data available on the CBN’s official website.
Against other major currencies, the naira posted the following rates at the official market on Friday:
CFA – N2.76
Yuan/Renminbi – N220.32
Danish Krona – N243.90
Euro – N1820.24
Yen – N11.12
Riyal – N427.18
South African Rand – N87.22
Swiss Franc – N1940.86
Pounds Sterling – N2133.30
Source: Getty Images
Naira Exchange rate at black market
In the parallel market, also known as the black market, it was the same story for the naira against the US dollar.
Traders who spoke to Legit.ng confirmed that the dollar remained stable against the Nigerian currency.
"We sold the dollar at N1,605 and bought it at N1,590 per $1 on Friday, the same rate as yesterday. Meanwhile, the pound sterling exchange rate increased to a selling rate of N2,130 and a buying rate of N2,110.
"Against the euro, the selling rate rose to N1,795, while the buying rate stood at N1,780."
CBN gets praises from IMF, World Bank
BusinessDay reports that the CBN's Governor Yemi Cardoso has received praise from the IMF and the World Bank for its recent policy measures, particularly for allowing market dynamics to determine the naira’s exchange rate.
ABCON wants CBN intervention
Ealier, Legit.ng reported that Aminu Gwadabe, the President of the Association of Bureau de Change Operators of Nigeria (ABCON), has called on the CBN to enforce maximum margins on sales by banks to Bureau De Change to prevent market distortions.
He noted that it is important that CBN issues a prudential percentage on volumes of sales on Diaspora remittance, portfolio investment proceeds by banks to BDCs.
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Source: Legit.ng
