Dollar Crashes in Official, Black FX Markets, CBN Releases 8 New Exchange Rates

• The US dollar exchange rate against the Nigerian currency has depreciated in the foreign exchange market
• The new exchange rate data released by the CBN shows that the dollar official has now depreciated for 7 straight days
• Aminu Gwadabe, ABCON President, spoke to Legit.ng on the challenges BDC operators are facing in raising recapitalisation funds instructed by the CBN

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

The value of Nigerian currency, the naira, has appreciated against the United States dollar in the official markets as trading activities resume after the public holiday.

Data from the Central Bank of Nigeria (CBN) showed that the Nigerian Foreign Exchange Market (NFEM) recorded a closing rate of N1,540 per dollar at the end of trading on Tuesday, June 10

Tuesday’s exchange rate is a 0.70% or N11 appreciation for the naira when compared to the closing rate of N1,551/$ recorded in the official market on Thursday, June 5, before the holiday.

On Tuesday, June 10, the Nigerian naira appreciated further against the pound sterling at the NAFEX window, gaining N28.25 to close at N2,083.37/£1 compared to N2,111.62/£1 on Thursday, June 3.

It also strengthened against the euro by N20.69, settling at N1,760.89/€1 from the previous N1,781.58/€1.

Naira improves against dollar at black market

In the parallel market, also known as the black market, it was the same story for the naira against the US dollar after the holidays.

Abudullahi, a trader who spoke to Legit.ng confirmed that the dollar appreciated against the Nigerian currency.

He said:

“We sold the dollar at N1,610 on Tuesday and buy at N1,597/$1 this is anappreciation from the previous selling rate of N1,615 and buying rate of N1,600.

The same trend was observed for other major currencies.

Another trader also confirmed that.

“The pound sterling was sold at N2,150/£1 on Tuesday and selling rate at N2,130/£1 on while the euro sells at N1,795/€1 and N1,780/€1.”

Snapshot of naira rates in official market

Based on CBN published rates, here is a breakdown of the naira’s performance against other foreign currencies in the NAFEM market.

• CFA Franc: N2.70
• Chinese Yuan (Renminbi): N214.33
• Danish Krone: N236.04
• Euro: N1,760.89
• Japanese Yen: N10.64
• Saudi Riyal: N410.61
• South African Rand: N87.13
• Swiss Franc: N1,874.22
• British Pound Sterling: N2,083.38

ABCON president speaks on BDC recapitalisation

Earlier, Legit.ng reported that the Association of Bureau De Change Operators of Nigeria (ABCON) has appealed to the Central Bank of Nigeria (CBN) to extend the deadline for the mandatory recapitalisation of Bureau De Change (BDC) operators.

The apex bank had set June 3 for BDCs to meet its capital requirements or face revocation of their licence.

Speaking to Legit.ng, Aminu Gwadabe, President of ABCON, urged the CBN to reassess licensing requirements to prevent widespread job losses and economic disruptions.

Source: Legit.ng