October 23, 2024

Naira's Value Depreciates Further Against US Dollar in Exchange Market

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Nigerian currency continues its free fall in the official and unofficial foreign exchange market against US dollar
New data shows that the naira fell by N49.86 in the official market and also weakened by N5 in the unofficial market
The CBN continue to promise that the market will bounce back and has introduced several policies to secure stability

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 naira has again depreciated on the official Nigerian Autonomous Foreign Exchange Market (NAFEM).

According to FMDQ Securities Exchange securities, the naira fell to N1,653.02/$1 exchange rate in the NAFEM window on Tuesday, October 21, 2024.

Nigerian currency falls against US dollar
Photo credit: Bloomberg/contributor
Source: Getty Images

Tuesday’s exchange rate is 3.1% or N49.86 depreciation compared to Monday’s closing exchange rate of N1,603.16/$1.

Read also

CBN gives new pound, euro, other currencies’ exchange rates as Naira crashes against US dollar

This happened as the value of forex transactions significantly declined during the session by 50.9 per cent or N183.07 million to $176.15 million from the $359.22 million achieved a day earlier.

Naira against pound and euro

It was a different story for Tuesday’s naira against the British pound and the euro.

The CBN data shows that the British pound sterling in the official market improved by N16.54 to wrap the session at N2,137.36/£1 versus the previous day’s N2,153.90/£1.

While against the euro, the Nigerian currency gained N10.80 to finish at N1,780.26/€1, in contrast to the N1,791.06/€1 it was traded on Monday.

In the parallel market, the value of the naira weakened further on Wednesday against the US Dollar by N5 to quote at N1,725/$1 compared with the preceding session’s N1,720/$1.

Read also

Dollar exchange rate drops by over N60 as naira bounces back after CBN intervention

CBN hopes for new naira-to-dollar exchange rate

Legit.ng reported that the CBN revealed that Nigeria’s foreign reserves had increased.

This came after the successful 500 million dollar bond issuance, which signifies investor confidence.

The increase would be a welcome development for the Central Bank of Nigeria in its fight to help the naira recover in the foreign exchange market.

Shortage of forex supply has always been a major reason the naira has come under intense pressure in both the black and official markets.

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Source: Legit.ng

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