Naira suffers devaluation as CBN’s authorised dealers set dollar rate at N853

On Wednesday, in the Investors’ and Exporters’ window, the official exchange rate for the Nigerian Naira to the US Dollar closed at N793.70/$1, experiencing a significant rise from the previous rate of N742.93/$1. This resulted from the United States Dollar’s appreciation in value by N50.77 kobo between Tuesday and Wednesday.

In the official market data released by FMDQ Exchange, it was observed that the Naira devalued by 6.83 per cent, primarily influenced by the premium rate affecting demand. The authorized dealers in the market also sold the US Dollar at a high rate of N853/$1.

Throughout the trading day, the price of the American Dollar fluctuated, reaching its lowest point at N699.50/$1 but eventually closing at N742.93/$1.

In total, authorized dealers and their clients in the official market traded $87.19 million in foreign exchange on Wednesday. This figure represented a decrease compared to the previous day’s transactions, falling short of $121.74 million by N34.55 million or 28.38 per cent.

Additionally, according to the Naira Rates, the aggregator of black market foreign exchange rates, the value of the United States Dollar increased by N6.6 kobo or 0.81 per cent. The USD was offered at N816.6/$1, contrasting with the preceding day’s rate of N810/$1.

The British Pound Sterling also traded upward in value, with an average rate of N1090.13/£1, reflecting a difference of N14.73 kobo compared to the previous day’s rate of N1075.4/£1.

Similarly, the European currency, the Euro, experienced a slight increase of N13.8 kobo, rising from N923.6/€1 to N937.4/€1 on the same day.

These fluctuations in exchange rates indicate the dynamic nature of the currency market and its sensitivity to various economic factors and market dynamics. Investors and traders must closely monitor these changes to make informed decisions in their financial transactions.