Dollar Crashes Against Naira, CBN Releases New Exchange Rates for Pound, Euro, 9 Other Currencies
- The value of the naira appreciated against the US dollar in both the official and parallel foreign exchange markets
- The Nigerian currency also strengthened against the British pound and the euro as investor inflows lifted market turnover by almost 30%
- Increased foreign portfolio investment, exporter inflows and non-bank corporate participation supported the naira's recovery
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, rebounded against the United States dollar and other major foreign currencies on Wednesday, July 22, following stronger foreign exchange liquidity in the official market.
Data from the Nigerian Foreign Exchange Market (NFEM) showed the naira appreciated by N5.68, or 0.41%, to close at N1,369.63/$1, compared with N1,375.31/$1 recorded in the previous trading session.
Source: Getty Images
The local currency also gained against other major currencies.
It appreciated by N8.01 against the British pound to trade at N1,833.12/£1, down from N1,841.13/£1, while it strengthened against the euro by N4.75 to close at N1,563.03/€1, compared with N1,567.78/€1 a day earlier.
Naira gains in black market
The naira also recorded gains in the parallel market, appreciating by N5 against the US dollar to trade at N1,400/$1, compared with N1,405/$1 on Tuesday.
Similarly, at the GTBank FX desk, the local currency gained N5, with the exchange rate improving to N1,383/$1 from N1,388/$1 in the previous session.
The latest appreciation followed improved dollar liquidity in the market, supported by stronger inflows from foreign portfolio investors, exporters and non-bank corporates.
As a result, total turnover at the official FX market rose by 29% to $416.42 million, up from $322.66 million recorded in the previous trading session.
The number of completed deals also increased significantly to 198, compared with 110 on Tuesday, indicating stronger market participation and improved liquidity.
Analysts said the foreign exchange market could remain stable in the near term, supported by Nigeria's gross external reserves, which have risen above $52 billion.
Source: Getty Images
Here are other currencies' exchange rates
The CBN also released the following selling rates for major currencies:
- CFA Franc: N2.39
- Chinese Yuan (Renminbi): N202.21
- Danish Krone: N209.05
- Euro: N1,563.03
- Japanese Yen: N8.40
- Saudi Riyal: N364.85
- South African Rand: N83.40
- SDR: N1,859.14
- Swiss Franc: N1,685.08
- Pound Sterling: N1,833.12
- US Dollar: N1,369.63
- WAUA: N1,867.90
- UAE Dirham: N372.91
Tanzania changes dollar use rule
Earlier, Legit.ng reported that the Bank of Tanzania introduced new foreign exchange regulations prohibiting the use of foreign currencies, including the US dollar, for domestic payments and transactions.
Under the directive, businesses and individuals are required to quote prices and accept payments only in Tanzanian shillings for goods and services offered within the country.
In a public notice signed by the Governor of the Bank of Tanzania, Emmanuel M. Tutuba, the apex bank said the measure was aimed at reinforcing the use of the local currency.
Source: Legit.ng
