CBN Releases New Exchange Rates As Naira Crashes Against US Dollar, Pound, Euro in All FX Markets
- The Central Bank of Nigeria has revealed the latest exchange rate for the naira against other notable currencies
- Based on released data, the naira's value fell in the official and also unofficial foreign exchange markets
- There is mixed feeling about the what the future holds for the naira as traders who spoke to Legit.ng expects a drop others expects improvement
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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.
The naira dropped in value slightly against the United States dollar in the Nigerian Foreign Exchange Market (NFEM).
The fall of Nigerian currency was more noticeable in the black market.
Source: Getty Images
Data from the Central Bank of Nigeria showed that in the NFEM, which is the official market, the the naira close at N1,533.94/$1 on Friday.
Friday's exchange rate is a slight depreciation by 25 kobo or 0.02% when compared to Thursday’s rate of N1,533.69/$1.
Naira exchange rate vs pound sterling
In the official market, the naira also lost ground against other major foreign currencies.
It fell by N12.97 against the pound sterling to trade at N2,038.49/£1, down from Thursday’s rate of N2,025.52/£1.
Nigerian currency value also weakened by N3.83 against the euro to settle at N1,755.46/€1, compared to N1,751.63/€1 recorded a day earlier.
Snapshot of naira rates in official market
Based on CBN published rates, here is a breakdown of naira's performance against other foreign currencies in the NAFEM market.
- CFA: N2.6751
- Yuan/Renminbi: N212.6685
- Danish Krone: N237.8709
- Euro: N1,775.46
- Japanese Yen: N10.36
- Saudi Riyal: N408.85
- South African Rand: N84.98
- SDR: N2,078.07
- Swiss Franc: N1,906.93
- Pound Sterling: N2,038.50
- US Dollar: N1,533.94
Source: Getty Images
Naira also fell against dollar at black market
In the parallel market, also known as the black market, it was the same story for the naira.
According to Abudulahhi, a BDC trader, the naira weakened slightly as demand for foreign exchange improved.
“We bought the dollar at N1,552 and sold it at N1,565 on Friday. Previously the selling rate was N1,555.
For other currencies, the euro was exchanged between N1,765 and N1,785, while the pound traded between N2,080 and N2,100.”
Abdullahi projected that in the week ahead, he expects the naira to recover and trade around N1,540 to the dollar.
CBN unveils new policy change
Earlier, Legit.ng reported that Olayemi Cardoso, the Central Bank of Nigeria (CBN) governor, has promised a policy shift in the future direction of the apex bank.
Cardoso's plans is to shift CBN's focus away from direct involvement in development finance initiatives, which were a hallmark of former Godwin Emefiele's leadership.
Under Emefiele, the CBN developed over 12 intervention Programmes. They include the Anchors Borrowers Programme for farmers, the Power and Airline Intervention Fund (PAIF), and the Youth Innovative Entrepreneurship Development Programme (YIEDP).
Source: Legit.ng
