Naira Slips by N3.15 Against US Dollar, New Exchange Rates Emerge
- Naira remains under pressure at the foreign exchange market, depreciating against the US dollar
- New FX rates from the official market revealed a small weakening of the naira at the NAFEM window
- Analysts and other stakeholders foresee a sustained FX market intervention from the CBN to stabilise the naira
The Nigerian currency, the naira, depreciated slightly against the United States dollar in the official foreign exchange market.
Data from the Central Bank of Nigeria (CBN) showed that the Nigerian Foreign Exchange Market (NFEM) closed at N1,375.46/$1 on Friday, reflecting a N3.15 or 0.23% decline compared with the previous session’s rate of N1,372.31/$1.
Source: Getty Images
Naira to dollar exchange rate
The naira also weakened against other major currencies in the official market. Against the British pound sterling, it fell to N1,849.72/£1, representing a loss of N9.46 from N1,840.26/£1 recorded in the previous trading day.
Similarly, the Nigerian currency depreciated against the euro, closing at N1,597.04/€1, down by N6.26 from N1,590.78/€1 in the preceding session.
At the GTBank FX desk, the naira also recorded a mild loss, trading at N1,381/$1 compared with N1,379/$1 previously.
In the parallel market, also known as the black market, the naira also fell against the US dollar, trading at N1,393/$1.
Traders said the new exchange rate reflected balanced demand and supply conditions in the informal market during the week.
A Lagos-based trader, Abudulahhi, told Legit.ng that:
"I sold the dollar at around N1,393/$1, while buying was about N1,382/$1. The pound traded between N1,840 and N1,860, and the euro ranged from N1,590 to N1,605. There was no major movement."
Source: Getty Images
Based on CBN published rates, here is a breakdown of the naira's performance against other foreign currencies on Friday.
- CFA: N2.43
- Yuan/Renminbi: N202.47
- Danish Krona: N213.67
- Euro: N1,597.04
- Yen: N8.65
- Riyal: N366.52
- South African Rand: N83.72
- Swiss Franc: N1,751.51
- Pounds Sterling: N1,849.72
- US Dollar: N1,375.46
- WAUA: N1,875.62
- UAE Dirham: N374.46
Analysts at Cowry Asset Management Limited, in their weekly financial outlook, have projected the Naira will remain under soft pressure in the near term due to continuous FX demand.
They noted:
“Looking ahead, the Naira may remain under mild pressure in the near term due to persistent FX demand, though rising external reserves could help cushion volatility."
CBN explains naira exchange rate against US dollar
Earlier, Legit.ng reported that the CBN says the naira is not being artificially propped up, stressing that the stability witnessed recently is market-driven following reforms and increased liquidity.
This was revealed on Wednesday by Governor Olayemi Cardoso while briefing journalists in Abuja after the Monetary Policy Committee (MPC) meeting.
He pointed out that after the past two years' reforms of the foreign exchange market, the market had become much more transparent and market-driven.
Source: Legit.ng
