Again, Naira Depreciates Against US Dollar in Official Market

• Naira’s value has depreciated further against the dollar in the official and unofficial forex markets
• The latest exchange rate marks one of the heavy depreciation for the naira against the dollar in recent days
• The Nigerian forex market is under severe pressure as foreign companies look to repatriate their revenue

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian naira has extended its free fall against the dollar in the official foreign exchange market.

According to data from the FMDQ Securities Exchange, the naira dropped in value in the Nigerian Autonomous Foreign Exchange Market (NAFEM) to exchange at N1,670.65/$1 on Monday, October 29.

Monday’s exchange rate represents a 4.4% or N70.65 depreciation compared with NN1,600/$1.which was traded on Friday last week.

The naira’s fall comes amid a decline in forex transactions from banks and authorised dealers.

Data shows that the value of forex transactions on Monday stood at $81.17 million, 71.5% or $203.76 million lower than the $284.93 million recorded in the last trading session.

The NAFEM window exchange rates are used by Nigerian banks when transacting with customers.

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 market on Monday by N4.58 to sell at N2,127.71/£1 compared with the preceding session’s N2,132.29/£1.

While against the euro, it improved its value by N5.95 to finish at N1,774.13/€1 versus N1,768.18/€1.

Naira to dollar rate at black market

Meanwhile, traders told Legit.ng in the black market that the naira also depreciated against the dollar.

Abdulahii a BDC trader told Legit.ng

“Naira weakened further on Monday by N10 and we sell at N1,740/$1, compared to the previous rate of N1,730/$1.

Lagos Chamber predicts new exchange rate

Earlier, Legit.ng reported that the Lagos Chamber of Commerce and Industry (LCCI) predicted that the value of the Nigerian currency would improve against the US dollar.

Gabriel Idahosa, the President of LCCI, gave the prediction when he addressed journalists about the state of the economy in Lagos.

The chamber’s president believes this rate is achievable if the CBN reviews the current free-floating exchange rate.

Source: Legit.ng