The value of the naira dropped for the first time in three days against the US dollar in the forex marketsData shows that the Nigerian currency recorded a slight depreciation in the official and unofficial marketsThe new EFEM system introduced by the Central Bank of Nigeria has been one of the main reasons for the turnaround
The naira has dropped in value against the US dollar at the official (Nigerian Autonomous Foreign Exchange Market).
Data obtained from CBN showed that the Nigerian currency is now N1,552/$1 after trading on Monday, December 9, 2024.
The naira falls against the US dollar in the official market
Photo credit: Bloomberg/contributor
Source: Getty Images
Monday’s exchange rate is slightly depreciating from the preceding day’s exchange rate of N1,535 a dollar.
The fall of the naira happened despite an improvement in the supply of forex to the spot market during the session.
The turnover on Monday is a 35.9% or $62.83 million drop to $112.32 million from the $175.15 million recorded last Friday, according to data from the FMDQ Securities Exchange.
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In the black market, naira also weakened against the Dollar by N40 to quote at N1,620/$1, in contrast to the previous trading day’s value of N1,580/$1.
CBN’s latest naira vs other foreign currencies
Pounds Sterling (GBP): N1,961.93Euro (EUR): N1,623.84Swiss Franc (CHF): N1,746.93CFA Franc (CFA): N2.47Saudi Riyal (SAR): N408.38Danish Krona (DKK): N217.71Chinese Yuan (CNY): N211.34South African Rand (ZAR): N86.22
Factors driving the naira exchange rate?
Meanwhile, ABCON President Aminu Gwadabe is in an exclusive chat with Henzodaily.ng, explained the current performance of the naira.
He attributed the rise in the naira’s value to three factors: renewed confidence from portfolio investors in Nigeria’s economy.
Gwadabe also noted that the CBN’s Electronic Foreign Exchange Management System (EFEMS) launch has been beneficial.
Additionally, he highlighted diaspora remittance inflows and reduced demand for dollars as contributing factors to the naira’s improvement.
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Again, traders crash dollar exchange rate as naira appreciates
Reno Omokri reacts as naira strengthens
Earlier, Henzodaily.ng reported revealed Reno Omokr’s reaction to the naira’s strong performance in the foreign exchange market.
The Former presidential aide claimed that some Nigerians are not happy with the appreciation of the naira.
He further noted that some are hoping and praying that the appreciation of the naira will not last.
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Source: Henzodaily.ng