• The Nigerian currency has further depreciated against the dollar in both the official and unofficial foreign exchange markets.
• This depreciation comes after a reduction in foreign currency transactions recorded by banks and official traders.
• The Central Bank of Nigeria is expected to intervene in the market by selling dollars to exchange operators to reduce the dollar rate on the black market.

Legit.ng Journalist Dave Ibemere has more than a decade of experience in business journalism and has deep knowledge of the Nigerian situation. economyactions and general market trends.

The Nigerian naira prolonged its depreciation against the United States dollar in the official foreign exchange market.

According to data from the FMDQ Stock Exchange, the value of the naira on the Nigerian Autonomous Foreign Exchange Market (NAFEM) fell to N1,631.17/$1 on Wednesday, October 30, 2024.

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Wednesday’s exchange rate represents a slight depreciation of 0.04% or 72 Kobo compared to N1,630.45/$1, which was exchanged the previous day.

The decline in the naira comes amid a decline in foreign exchange transactions by banks and authorized dealers.

the data shows that the value of Wednesday’s foreign exchange transactions decreased by 46.9% or $113.61 million to $128.98 million from $242.59 million. recorded on Tuesday.

Naira rate against pound and euro

However, the history of the naira in the official market is different from that of the pound sterling and the euro.

The CBN reports that the Nigerian currency gained against the Pound Sterling in the official market on Wednesday 18.57 Naira to trade at 2,143.40 Naira/1 Pound compared to the previous day’s exchange rate of 2,161.97 Naira/1 Pound.

while against Regarding the euro, it improved its value by 18.90 naira to be quoted at 1,782.07 naira/1 euro compared to 1,800.97 naira/1 euro that it was trading on Tuesday.

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Naira to dollar rate on the black market

Meanwhile, traders said Legit.ng on the black market that the naira also depreciated against the dollar by N5

Abdulahii, a BDC trader, said Legit.ng.

“We exchanged one dollar at 1,745 naira/$! compared to the previous exchange rate of 1,740 naira/1 dollar.”

CBN expects new naira to dollar exchange rate

Legit.ng previously reported that the CBN revealed that Nigeria Foreign exchange reserves had increased.

This came after the successful issuance of bonds worth $500 million, demonstrating 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.

The shortage of foreign exchange supply has always been one of the main reasons why the naira has been under intense pressure in both the black and official markets.

Review by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng