- The naira has depreciated once again against the United States dollar in the foreign exchange markets
- New data shows that the naira weakened in both the official and unofficial exchange markets and sold above N1,650
- The CBN has released a new foreign exchange guideline for players and hopes that it helps the naira
The Nigerian naira ended the month of November in a low against the United States dollar in the official foreign exchange market.
According to data from the FMDQ Securities Exchange, the naira closed at N1,672.69/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, November 29, the last trading day of the month.
Photo credit: CBN
Source: Getty Images
Friday’s exchange rate represents a depreciation of 1.7% or N27.83 when compared with N1,644.86/$1 naira exchanged on closed on Thursday.
The naira’s fall comes amid a decline in forex transactions from banks and authorised dealers.
The data shows that the value of forex transactions on Friday went down by 56.7% or $306.24 million to $254.10 million from the $560.34 million achieved the previous day.
Naira rate against pound, euro
It was, however, a different story for the naira compared to the British pound sterling and euro in the official market.
The CBN reports that the Nigerian currency gained against the pound sterling in the official improved by N13.38 to settle at N2,111.48/£1 compared with the preceding day’s N2,124.86/£1.
While against the euro, it gained N15.61 to finish at N1,757.57/€1 versus Thursday’s closing price of N1,773.18/€1.
Naira to dollar rate at black market
Meanwhile, traders told Legit.ng in the black market that the naira appreciated against the dollar by N5
Abdulahii, a BDC trader, told Legit.ng.
“Naira improved on Friday as we exchanged one dollar at N1,735/$1 compared with Thursday’s closing price of N1,750/$1.”
Meanwhile, the CBN‘s EFEMS initiative, aimed at promoting transparent, fair, and efficient FX trading, minimizing counterparty risks, and ensuring compliance with CBN regulations, is set to go live on Monday, December 2.
Legit.ng reports that the apex bank has pegged the minimum tradable amount at $100,000, with incremental clip sizes of $50,000 to promote transparency and efficiency in the FX market.
CBN hopes for new naira-to-dollar exchange rate
Legit.ng earlier reported that the CBN revealed that Nigeria’s foreign reserves has increased.
This came after the successful 500 million dollar bond issuance, which signifies investor confidence.
Shortage of forex supply has always been a major reason the naira has come under intense pressure in both the black and official markets.
Source: Legit.ng
