Economy

Naira Crashes to All Time Low Against the Dollar

Published

2 years ago

September 26, 2022

Eric

The Naira is currently exchanging at an all-time high amount against the US dollar as forex scarcity continues to bring more pain to importers and travelers.

Black market dealers said on Monday that a dollar exchanged for as high as N730 for buyers and N720 for those trying to sell.

The traders confirmed that there was a surge in dollar demand over the weekend and could worsen within the week.

Monday morning rate was a 2.24 per cent loss in value for Naira compared to N714 traders exchanging dollars on Friday.

With the current rate, the naira has depreciated by 29.20 per cent from N565 per dollar at the beginning of the year.

Nigeria’s currency has been on a free fall on the black market, but for Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele, an unregulated market is “a tainted market in Nigeria, where people desire to deal in illegal foreign exchange (FX) transactions including sourcing of FX cash for purposes of offering bribes, corruption. That is where they deal.”

CBN also advised Nigerians to resist the urge to succumb to the speculative activities of some players in the foreign exchange market.

Meanwhile, at the Investors and Exporters (I&E) forex window, also known as the Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX), and the official market, naira appreciated marginally by 0.04 per cent as the dollar was quoted at N436.33/$ on Friday as against N436.50/$ quoted the previous day.

On Friday, most currency dealers who participated in the foreign exchange auction maintained bids between N425.00 (low) and N438.00 (high) per dollar.

The data indicated that the daily foreign exchange market turnover increased marginally by 4.29 per cent to $106.11 million on Friday from $101.74 million recorded on Thursday.

Economy

Naira Makes More Recovery, Sells at N1,453/$1

Published

1 month ago

March 22, 2024

Eric

The Naira continued its appreciation at the official market on Thursday, March 21, 2024 to close at N1,453.28/$1, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).

This represents an appreciation of N39.33 when compared to the N1,492.61/$1 it closed on Wednesday, March 20, 2024.

The intraday high was N1,598/$1, while the intraday low was N1,300/$1, representing a wide spread of N298/$1.

Similarly, the Naira appreciated against the dollar at the parallel window to trade at N1,500/$1, this represents an appreciation of N20.00 as against the N1,520 /$1 it traded the previous day.

The Naira also appreciated slightly against the British Pound to trade at N2,000/£1 as against the previous trading day’s price of N2,020/£1 representing a gain of N20 for the local currency.

The Canadian dollar, however, closed flat against the naira to trade at N1,270/CA$1 same as the N1,270/CA$1 it traded the previous day representing a decline of N20 in the local currency.

The Naira gained N30 against the Euro to trade at N1,670/€1 as against the previous closing price of N1,700/€1.

Economy

Naira Gains Against Dollar, Trades at N1,603/$1

Published

1 month ago

March 13, 2024

Eric

The Naira, Tuesday continued its recovery against the American dollar as it traded at N1,603.38/$1, data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) window has shown.

This represents a gain of N15.48 when compared to the N1,617.96/$1 it closed on, on Monday, March 11, 2024.

The intraday high was N1,637/$1, while the intraday low was N1,425.35/$1, representing a lean spread of N211.65/$1.

Meanwhile, the Naira gained N12 against the dollar at the parallel market as the local currency appreciated to N1,603/$1 as against the N1,615 /$1 it traded the previous day. As it stands, the naira is trading at the same rate at both official and parallel windows.

The Naira, however, slumped against the British Pound to trade at N2,050/£1 as against the previous trading day’s price of N2,030/£1 representing a loss of N20 for the local currency.

After about two weeks of closing flat against the Canadian dollar, the naira slumped massively to trade at N1,300/CA$1 on Tuesday, representing a decline of N150 when compared to the N1,150/CA$1 it traded the previous day.

The Naira lost N35 against the Euro to trade at N1,740/€1 as against the previous closing price of N1,705/€1 representing a loss of N35 for the local currency.

Economy

Binance to Close Shop in Nigeria, Stops Transaction, Trading in Naira

Published

2 months ago

March 5, 2024

Eric

By Reuters – Binance will stop all transactions and trading in Nigeria’s local currency after March 8 amid a country-wide crackdown on crypto exchanges that have been blamed by authorities for feeding a black market for foreign exchange.

It will stop supporting withdrawals after Friday and any remaining balances in Nigerian Naira will be automatically converted into Tether – a stablecoin whose value is pegged to the U.S. dollar.

Last week, Nigerian authorities detained two Binance senior executives on undisclosed charges as part of the crackdown.

They were still in custody, their local lawyer said before a parliamentary committee on Monday.

Source: Reuters