Dollar crashes massively against naira in latest exchange rate

The Nigerian Naira continued its upward trajectory against the US Dollar on Friday, reaching an average exchange rate of N950 to $1 in the parallel market. This represents a substantial gain of N170 or a 15.18% appreciation compared to the N1,120 exchange rate recorded the previous day. The market has witnessed the Naira’s second consecutive day of recovery following the Central Bank of Nigeria’s (CBN) move to clear its foreign exchange (FX) backlog on Thursday.

Bureaux De Change operators have reported that the Naira’s value is still appreciating, largely due to the positive market reaction following the CBN’s actions. A Bureaux De Change trader, known as Awolu, mentioned, “The dollar is N950 today if you want to buy it.”

Another trader, Kadri, indicated that he purchases the US Dollar at N900/$ but sells it at N950/$. He mentioned, “The Dollar is coming down. It is N900 if you want to sell, but it is N950 if you want to buy.”

In different areas, such as Taura, the exchange rate varies. Taura mentioned that the Naira is valued at N1,015/$ in his region. He explained, “If you want to sell, it is N980, but if you want to buy, it is N1,015.”

Muhammad further reported, “The Naira is declining drastically. It is still falling, and it is now N970. The difference between the buying and selling rates is N10.”

Aminu Gwadabe, the President of the Association of Bureaux De Change Operators of Nigeria, confirmed that the CBN’s actions in clearing its FX backlog have played a vital role in the strengthening of the Naira. He emphasized the need for continued clarity from the CBN regarding its monetary policies.

On Thursday, it was reported that the CBN had commenced the payment of outstanding matured FX forwards to various creditors. Unconfirmed sources also noted that three banks, namely Citi Bank, Stanbic IBTC, and Standard Chartered Bank, had received full payments for debts owed by the CBN. The market continues to react to these developments, contributing to the Naira’s rebound against the US Dollar.