N1,376/$: Dollar Exchange Rate Drops After CBN’s Decision
- The value of the naira has recovered against the US dollar in Nigeria’s official foreign exchange market
- The recovery followed after the CBN resumed dollar sales, which helped improve the FX supply
- There were also movements in the exchange rates of other major currencies, including the Pound Sterling
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian currency, the naira, appreciated against the United States Dollar and several other foreign currencies following renewed intervention by the apex bank.
Data released by the Central Bank of Nigeria showed that the naira strengthened by N25.21 in a single trading session to close at N1,376.19/$ on Wednesday, March 11, compared to N1,401.40/$ quoted earlier in the week at the Nigerian Foreign Exchange Market (NFEM).
Source: Getty Images
Market participants quoted the dollar at a low of N1,373 and a high of N1,388 during Wednesday’s trading session, according to data published by the apex bank.
However, the naira remained stable in the parallel market, commonly known as the black market, where the dollar traded at N1,440/$.
CBN resumes dollar sale
External reserves, which give the CBN the capacity to intervene in the foreign exchange market, have continued to climb, reaching about $50.01 billion, according to figures published on the apex bank’s website.
Speaking earlier, Olayemi Cardoso, governor of the Central Bank of Nigeria, said the improvement in reserves reflects stronger external fundamentals and ongoing reforms aimed at restoring confidence in Nigeria’s FX market.
Recent data showed that the CBN sold about $314.2 million, representing roughly 25% of total FX inflows in the market, after accumulating foreign currency in previous weeks.
A report by Coronation Merchant Bank indicated that total foreign exchange inflows reached $1.26 billion, with foreign portfolio investors contributing $518.7 million, representing 41.3% of total inflows.
Nigeria’s external reserves have also strengthened further, rising to $50.45 billion, which the CBN said provides approximately 9.68 months of import cover, offering stronger protection against external economic shocks.
Source: Getty Images
Here are other currencies’ exchange rates
The Central Bank of Nigeria also released updated exchange rates for other foreign currencies:
- CFA: N2.49
- Yuan/Renminbi: N200.41
- Danish Krona: N213.39
- Euro: N1,594.59
- Yen: N8.68
- Riyal: N366.72
- South African Rand: N83.82
- SDR: N1,881.26
- Swiss Franc: N1,765.48
- Pounds Sterling: N1,845.47
- US Dollar: N1,376.19
- WAUA: N1,915.03
- UAE Dirham: N374.63
Expert explains what Iran war means for naira
Earlier, Legit.ng reported that Muda Yusuf, the Chief Executive Officer for the Centre for the Promotion of Private Enterprise (CPPE), has stated that Nigeria could face mixed economic outcomes in the ongoing war between Iran, the United States, and Israel.
According to Yusuf, the war could affect the naira, oil revenue, and inflation.
The CPPE boss explained that the net effect on the exchange rate will hinge on whether stronger oil inflows outweigh potential capital reversals.
Source: Legit.ng
