Naira Crashes Against US Dollar As Trump’s America First Policy Begins

• The naira’s value fell further against the United States dollar on the first day in office for President Donald Trump
• Data shows that the naira crashed against the dollar in official and unofficial foreign exchange markets
• During his inaugural speech as the 47th president of the U.S., Donald Trump reiterated his decision to put America first

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 value of Nigerian currency depreciated further against the US dollar in the foreign exchange markets.

New data from FMDQ securities showed that at the close of business on Tuesday, January 21, the naira exchange rate to the dollar shrunk to N1,552.78/$1.

Tuesday’s rate represents a 0.18% or N2.73 drop in value compared to Monday’s closing price of N1,550.05/1.

It was a similar outcome for the naira against the dollar in the unofficial market, also known as the black market.

Bureau de Change (BDC) traders told Legit.ng that the naira lost N5 of its value to exchange at N1,670/$.

Abdullahi, a BDC trader said:

“On Tuesday, one dollar was sold at N1,670, which is higher than the N1,665 at which it was sold on Monday.

There is pressure in the market, and the Trump administration has given the dollar an expected bright future. As you know, the market is largely based on speculation. I foresee the Naira selling close to N1,700 before the end of the month.”

Naira against other currencies

According to data from the Central Bank of Nigeria, there was no movement in the naira exchange rate against the Pound Sterling in the official market at N1,906.18/£1.

However, against the euro, the naira weakened to N1,613.48/€1.

Here are other exchange rates

• CFA: N2.43
• Yuan/Renminbi: N212.97
• Danish Krona: N215.90
• Euro: N1611.13
• Yen: N9.98
• Riyal: N413.48
• South African Rand: N83.69
• Swiss Franc: N1706.17
• Pounds Sterling: N1906.18

Donald Trump elected as president

Reuters reports that currency speculations have strongly backed the idea that Donald Trump’s second term as US president will help strengthen the dollar.

The bullish dollar trade has had a remarkable run since late September, when investors began betting on a stronger US economy, ‘higher for longer’ US interest rates, and a Trump victory.

However, Morgan Stanley analysts recommend selling the dollar against the euro, sterling and yen.

CBN denials selling cheap dollar

Legit.ng reported that the Central Bank of Nigeria (CBN) has denied that it sold foreign exchange (FX) to BDC operators at the rate of N1,001/$1.

The CBN stated that a circular purporting the announcement by the apex bank of the sale of $10,000 to BDCs at the rate of N1,001/$1 was fraudulent.

The apex bank asked Nigerians to disregard information that did not emanate from official sources.

Source: Legit.ng