Global Upfront Newspapers
Business Cover News

Naira sinks to record lows against Dollar, Euro, Pound – 530/$1, 620/€1, 717/£1

The Nigerian currency, the Naira, plunged to a fresh record low against the dollar, the British pound sterling and euro on Thursday amid the lingering scarcity of foreign exchange in the country.

The value of the Naira fell against the US currency on at both the parallel market and the Investors’ and Exporters’ foreign exchange window.

The local currency, which stood at 526/$1 on Tuesday, fell to 530/$1 at the parallel market on Thursday from 528/$1 on Wednesday.

The Naira dipped to 720 against the pound at the parallel market from 717/£1 on Wednesday, while the euro rose to N620 from N616 on Wednesday.

At the I&E window, the Naira weakened further to 411.67/$1 on Thursday from 411.50/$1 on Wednesday, according to FMDQ Group.

No less than 55 per cent to 60 per cent of Nigerian forex transactions are traded at this window, which is used by the CBN and most exporters and investors, according to Financial Derivatives Company Limited.

“It serves as not only a source of price discovery but also a barometer for measuring potential and actual CBN intervention in the market. Some of the exchange rate determinants are balance of payments, capital inflows and trade balance,” the FDC said.

It was reported on Tuesday that the Naira extended its decline on Monday, sliding to an all-time low of 527 against the dollar at the parallel market.

The Naira had strengthened to 506/$1 on August 4 after plunging to 525/$1 at the parallel market on July 28, a day after the Central Bank of Nigeria stopped foreign exchange sales to Bureaux de Change.

The CBN Governor, Mr Godwin Emefiele, had on July 27, at the end of the Monetary Policy Committee meeting, announced the stoppage of forex sale to the BDCs, saying they had turned themselves into “agents that facilitate graft and corrupt activities of people who seek illicit fund flow and money laundering in Nigeria.”

In a related development, the country’s external reserves have risen above $34bn for the first time in more than two and a half months, according to the CBN.

The reserves, which had been wobbling in recent weeks, jumped from $33.40bn at the end of July to $34.02bn on August 31, the highest since June 9.

The CBN data showed that the reserves fell to a record low of $33.09bn on July 12 from $34bn on June 10.

This story first appeared in Upshot Reports, https://upshotreports.com/naira-sinks-to-530-against-dollar-pound-hits-n720/

Advertize With Us

See Also:

New Violence: South Africa needs new thinking for its democracy to work for all

Global Upfront

NAF begins airlift of medical relief materials to 13 ECOWAS member nations

Global Upfront

Secession, restructuring won’t serve Nigerians’ need for better life, says Amaechi

Global Upfront

Nigeria to play role expected role in Africa, Buhari assures former Malian leader, Apha Konare

Global Upfront

Lagos distributes free phones to pupils to bridge digital divide

Global Upfront

Burkina Faso’s Cim Métal wants to take on Nigeria’s Dangote in Togo’s cement market

Global Upfront

Terrorising bandits’ kingpins in Northwest, Northcentral regions opt for amnesty as military air, ground offensives hit forest camps, hideouts

Global Upfront

Nigeria’s maintains uptick in COVID-19 sample tests, total now 125,090

Global Upfront

Microsoft is ditching passwords: Here’s how you can log in with alternate methods

Global Upfront

APC holds 4th NEC meeting since formation February 2013, as President backs Gaidom as Acting National Chairman

Global Upfront

This website uses Cookies to improve User experience. We assume this is OK...If not, please opt-out! Accept Read More