N1,353/$ : Naira Weakens at Official Market, CBN releases new exchange rates
- The naira has depreciated further against the US dollar in the unofficial foreign exchange market
- Exchange rates for the British pound and the euro also shifted as market sentiment reacted to global prices
- The Central Bank of Nigeria continues to depend on crude oil earnings to generate foreign exchange
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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.
Fresh foreign exchange (forex) demand pressure saw the naira depreciate against the United States dollar in the Nigerian Foreign Exchange Market (NAFEM) on Thursday, April 22.
Data from the Central Bank of Nigeria showed that the naira appreciated by N5.46 or 0.4% to close at N1,353.91/$1, compared with the preceding day’s value of N1,348.45/$1.
Source: Getty Images
Naira exchange rates
It was the same outcome for the local currency against other major currencies in the official market.
The naira depreciated against the British pound by N4.13 to close at N1,825.88/£1, compared with the previous session’s N1,821.75/£1, while it dropped by 72 kobo against the euro to settle at N1,582.72/€1 from N1,582.00/€1.
However, the naira appreciated slightly at the GTBank FX desk by N2 during the session to quote at N1,359/$1, compared with the previous closing price.
At the parallel market, the naira also fell against the dollar to N1,399/$1.
Abudullahi, a BDC trader, told Legit.ng:
"The dollar is buying at N1,389 and selling at N1,399, while the pound trades at N1,855 to buy and N1,870 to sell, and the euro stands at N1,607 and N1,620 respectively."
NFEM interbank
Forex pressure was driven by weaker liquidity conditions, as data showed that NFEM interbank turnover fell sharply to N28.117 million, down from N66.084 million recorded in the previous session.
Concerns over liquidity constraints, policy transparency, and investor confidence continue to weigh on the FX market.
This comes amid a further decline in Nigeria’s external reserves, even as the CBN maintains that the drop is not a cause for concern.
Global developments also added pressure, as rising geopolitical tensions strengthened demand for the US dollar, further weakening emerging market currencies, including the naira.
Source: Twitter
CBN new exchange rates
- CFA: N2.41
- Yuan/Renminbi: N198.08
- Danish Krona: N211.76
- Yen: N8.49
- Riyal: N360.97
- South African Rand: N82.05
- Swiss Franc: N1,723.19
- British Pound Sterling: N1,825.88
- US Dollar: N1,353.91
- WAUA: N1,849.62
- UAE Dirham: N368.58
- SDR: N1,859.43
- Euro: N1,582.72
Foreign reserves on the rise
Legit.ng earlier reported that the United States dollar climbed to its highest level in seven days on Monday, April 20, driven by renewed geopolitical tensions between Washington and Tehran that unsettled global financial markets.
According to Reuters, investor sentiment turned cautious over the weekend after reports that the US seized an Iranian cargo vessel, further escalating already fragile relations between the two nations.
The development sparked a wave of risk aversion, prompting investors to shift capital into traditional safe-haven assets.
The dollar benefited from this flight to safety, even as broader currency markets showed mixed signals.
Source: Legit.ng
