New Exchange Rate As Naira Depreciates Again Against US Dollar
- The naira has depreciated again in the foreign exchange markets as demand pressure soars after the CBN stopped intervention
- The poor performance of the Nigerian currency was recorded in both the official and black markets
- The market continues to wait for another round of CBN intervention to stop the free fall of the Nigerian currency
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 value of Nigerian currency, the naira, has depreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
New data from the FMDQ securities showed that the naira at the official market closed trading at N1,586.11/$1 on Thursday, August 22, 2024.
Thursday's exchange rate represents a 2.74% or N42.27 depreciation for the naira compared to the previous day's rate of N1,543.84/$1.
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Access, others sell dollars at cheaper rate as naira gains in official market, falls in black market
The poor performance of the naira comes as the value of FX transactions recorded in the official market on Thursday went down by 30%, or $51.59 million, to $120.20 million from the preceding session's $171.79 million.
Similarly, CBN data showed that the naira depreciated against the pound sterling during the session by N38.53, closing at N2,087.11/£1 compared with the midweek's N2,048.58/£1.
It was the same story for the naira against the euro, as it suffered a loss of N23.83 to trade at N1,770.74/€1 versus Wednesday's closing price of N1,746.91/€1.
Naira to dollar at black market
It was the same story for the naira at the parallel market, also called the black market.
Traders told Legit.ng that the naira lost N5 against the dollar yesterday to quote N1,615/$1 compared with the preceding day's rate of N1,610/$1.
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N1,592/$1: CBN updates new exchange rate for dollar, pound, euro
UK firms predict exchange rate in 2024
Earlier, Legit.ng reported that two UK-based financial institutions predicted a new exchange rate for the naira against the dollar.
Goldman Sachs and Standard Chartered opined the naira would rebound and close stronger in 2024.
Their predictions were based on the current reforms by the Cardoso-led CBN.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
Source: Legit.ng
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