New Exchange Rate As Naira Records First Loss in a While Against US Dollar in Official Market

Naira depreciated in the official market as concerns grew about the depletion of the country’s foreign exchange (FX) reserves amid weak crude oil revenue....CONTINUE READING

Data from FMDQ securities shows that Nigerian currency weakened in value in the Nigerian Autonomous Foreign Exchange Market (NAFEM) to N1,148.14/$1 on Tuesday, April 16, 2024.

This represents a 1.07% or N12.10 depreciation compared to the previous day’s closing rate of N1,136.04/$1.

It is the same story for the naira against the pound sterling in the official market:

Data shows naira lost N28.80 to close at N1,446.45/£1, compared with Monday’s value of N1,417.65/£1.

While against the Euro, it lost N22.87 to settle at N1,234.79/€1 compared to the previous day’s exchange rate of N1,211.92/€1.

Legit.ng had earlier reported that the country’s FX reserves have witnessed a significant downturn in the last 29 days following a series of interventions by the Central Bank of Nigeria (CBN).

Data shows that the CBN has removed about $2.16 billion to stabilize the naira. As of April 15, 2024, data from the apex bank revealed that the external reserves were now positioned at $32.29 billion.

However, the story for the naira is different in the parallel market, also known as the black market.

Checks showed that the naira improved its value on Tuesday by N15 to sell at N1,100/$1 versus the preceding session’s N1,115/$1.

Earlier, Legit.ng reported that two UK-based financial institutions have predicted a new exchange rate for the nnairaagainst the dollar.

Goldman Sachs and Standard Chartered believe the nnairawill rebound and close stronger in 2024.

Their predictions are based on the current reforms by the Cardoso-led CBN.