CBN Announces 9 New Exchange Rates As Dollar Rises, Naira Falls

• The value of Nigerian currency, the naira has depreciated against the dollar in the foreign exchange market
• The new exchange rate data released by the CBN shows that the naira recorded a slight depreciation
• Expert has predicted a positive performance for the naira in June and July in all foreign exchange markets

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 Central Bank of Nigeria has shown that the Nigerian Foreign Exchange Market (NFEM) recorded a closing rate of N1,550 per dollar at the end of trading on Tuesday, June 24.

Tuesday's exchange rate is a 0.19% or N3 depreciation for the naira when compared to the previous day's closing rate of N1,547 recorded in the official market.

The naira also depreciated against the pound sterling in the official market, closing at N2,082.76/£1 on Monday, a N1.40 increase from Friday’s rate of N2,081.36/£1.

Against the euro, it similarly weakened, settling at N1,782.51/€1 compared to N1,781.94/€1 in the previous session, a decline of 57 Kobo.

Naira improves against dollar at black market

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

Traders who spoke to Legit.ng confirmed that the US dollar appreciated against the naira.

Abudulahi told Legit.ng:

"The naira gained slightly against the US dollar in the unofficial market, selling between N1,585 and N1,595 on Monday, compared to N1,590 to N1,600 on Friday.

"It also strengthened against the euro, trading at N1,785 to N1,800 on Monday, down from N1,787 to N1,803 on Friday.

"The rate against the pound sterling, however, remained unchanged at N2,130 to N2,150 on both days."

Snapshot of naira rates in official market

Based on rates published by the CBN, here is a breakdown of the naira’s performance against other foreign currencies in the NAFEM market.

• CFA: N2.71
• Yuan/Renminbi: N215.51
• Danish Krona: N238.92
• Euro: N1,782.51
• Yen: N10.53
• Riyal: N412.69
• South African Rand: N85.72
• Swiss Franc: N1,896.31
• Pounds Sterling: N2,082.76

Expert predicts new exchange rate for July, June

Earlier, Legit.ng reported that Bismarck Rewane, CEO of Financial Derivatives Company, projected that the value of Nigerian currency would improve and trade between N1,600 and N1,650 in the official foreign exchange market during June and July.

The financial expert based his forecast on data showing the Central Bank of Nigeria’s efforts to curb money supply growth, which had peaked at 78% in May 2023.

Rewane made this projection while speaking at a recent Lagos Business School Breakfast Club meeting.

Source: Legit.ng