Naira Records Depreciation Against Dollar
The Nigerian naira has settled at N1,538.50 per dollar at the foreign exchange market, marking the first depreciation after a streak of appreciation.
According to the Central Bank of Nigeria’s foreign exchange change data, the naira stood at N1,538.50 per dollar on Monday, slightly down from N1,535 recorded on Friday.
This represents a depreciation of N3.5.
Naira’s Black Market Rates.
In the black market, the naira closed at N1,630 per dollar on Monday, up from N1,600 recorded last week.
This is the first time the naira has depreciated after the Central Bank of Nigeria introduced the Electronic Foreign Exchange Matching System (EFEMS) for transparent FX transactions.
Factors Influencing Naira’s Value.
The Centre for Promotion of Private Enterprise attributes the recent naira gain against the dollar to the CBN’s introduction of EFEMS and a surge in the country’s external reserves.
However, the recent depreciation suggests that the naira’s value is still subject to fluctuations in the foreign exchange market.
Key Takeaways.
- The naira settled at N1,538.50 per dollar at the foreign exchange market.
- The naira depreciated by N3.5 from its previous value.
- The black market rate closed at N1,630 per dollar on Monday.
- -The Central Bank of Nigeria’s introduction of EFEMS and a surge in external reserves contributed to the recent naira gain.
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