New Exchange Rate As Naira Closes June at Highest Level in 3 Months

• The value of Nigerian currency appreciated against the dollar in all foreign exchange market in June
• Latest CBN data showed that on Monday naira secured its highest closing exchange rate in the last three months
• The CBN intervention in the market helped the naira improved in official and unofficial FX 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, appreciated against the United States dollar in the official market.

Data from the CBN showed that the Nigerian Foreign Exchange Market (NFEM) closed at N1,532 per dollar at the end of trading on Monday, June 30.

Monday's exchange rate is a 0.32% or N5 appreciation for the naira when compared to the previous closing rate of N1,537 recorded in the official market.

June closing rate is the highest level for the naira in the last 3 months

The naira also appreciated against the Pound Sterling in the official market, closing at N2,094.63/£1 on Monday, which is a N17.66 gain from N2,112.29/£1 in the previous session.

While against the Euro, it also appreciated by N11.02 to settle at N1,794.66/€1, compared to the preceding trading day’s rate of N1,805.68/€1.

Snapshot of naira rates in official market

Based on CBN published rates, here is a breakdown of the naira's June closing rate against other foreign currencies in the NAFEM market.

• CFA: N2.75
• Yuan/Renminbi: N213.51
• Danish Krone: N240.48
• Euro: N1,794.66
• Yen: N10.59
• Riyal: N407.86
• South African Rand: N85.97
• Swiss Franc: N1,918.85
• Pounds Sterling: N2,094.63

The Central Bank of Nigeria (CBN) recently sold approximately $86.6 million last week, which helped ease demand pressure in the market.

Naira improves against dollar 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 appreciated against the Nigerian currency in the last trading day of June.

Abdullahi, a BDC trader, said:

“We bought the dollar at N1,550/$1 and sold at N1,563/$1."

He added that the euro was bought at N1,790/€1 and sold at N1,810/€1, while the Pound Sterling was bought at N2,130/£1 and sold at N2,150/£1."

CBN changes customs exchange rate

Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) has reduced the customs duty rate, effectively making the cost of importing goods less expensive.

According to data from Nigeria's trade portal, the CBN slashed the exchange rate for clearing goods to N1,546.86 per dollar.

The customs exchange rate for import duties dropped due to the performance of the naira in the official market.

The apex bank noted that the rate remains valid until the date of termination of the importation and clearance of goods by importers.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng