• The value of the Nigerian currency has plummeted to its lowest level against the US dollar in the currency markets.
• The latest type of change comes after Donald Trump won the US election and became the 47th president.
• Naira will have to be backed by the CBN if sentiment around the dollar among investors is high

Nigerian naira fell to its lowest level ever against the US dollar in the official market (Nigerian Autonomous Foreign Exchange Market) on Wednesday, November 6, 2024.

Data obtained by Legit.ng FMDQ securities exchange, where the Naira is officially traded, showed that Nigeria badge It closed at N1,681.65 per dollar on Wednesday.

This represents a loss of 0.61% for the naira compared to N1,671.32 per dollar which closed on Tuesday.

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Dollar rises against pound and euro after Trump’s victory, naira falls

The naira’s fall to a record low comes as the supply of foreign exchange to the market fell to $196.7 million on Wednesday, from $218 million the previous day.

So far in November, the average foreign exchange turnover It is around $147 million per day, which highlights the pressure the naira faces.

The story was the same for the naira on the black market as it fell N5 against the US The dollar will be exchanged at 1,735 naira on Wednesday, compared to Tuesday’s exchange rate of 1,730 naira.

Here is how the naira performed against other currencies:

• Exchange rate in pounds sterling: 2,260 naira
• Euro rate: 1,864 naira
• CAD Rate – N1,268
• YUAN Rate – N240

The dollar strengthens

After the victory of donald trump Before the US presidency, the dollar reached its highest level in recent months, not only against the naira but also against the pound and the euro, among others.

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Dollar supply in forex market hits $5.4 billion as naira trades at new rates

There seems to be positive sentiments that Trump will introduce several policies that will allow investors to earn better returns on their dollar savings and investments.

Fitch rates naira performance in foreign exchange markets

Previously, Legit.ng reported that Fitch Ratings had expressed caution over the stability of Nigeria’s foreign exchange market. despite various assurances from the CBN.

The agency believes that the Central Bank of Nigeria and other efforts have not yet yielded a positive result.

There is a ray of hope for the CBN as Nigeria’s gross foreign exchange reserves rose to $39 billion in October.

Source: Legit.ng