2 weeks ago
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- The value of the Nigerian currency has crashed to its lowest level against the US dollar in the foreign exchange markets
- The latest exchange rate comes on the back of Donald Trump winning the US election to become 47th president
- Naira will have to be supported by the CBN has the sentiment around the dollar among investors is high
Nigerian naira fell to its lowest level in history against the US dollar at the official (Nigerian Autonomous Foreign Exchange Market) on Wednesday, November 6, 2024.
Data obtained by Legit.ng from FMDQ securities, where Naira is officially traded, showed that Nigerian currency closed at N1,681.65 per dollar on Wednesday.
Source: Getty Images
This represents a 0.61% loss for the naira compared to N1,671.32 per dollar, where it closed on Tuesday.
The fall of the naira to record low comes as forex supply to the market fell to $196.7 million on Wednesday, down from $218 million on Monday.
So far in November, the average forex turnover is around $147 million per day, highlighting the pressure naira is facing.
The story was the same for the naira in the black market as it fell by N5 against the US dollar to exchange at N1,735 on Wednesday compared to Tuesday's rate of N1,730.
Here is how naira performed against other currencies:
- GBP Rate - N2,260
- EURO Rate - N1,864
- CAD Rate - N1,268
- YUAN Rate - N240
Dollar gets stronger
Following the victory of Donald Trump to US presidency, the dollar rose to its strongest level in recent months not only against naira but also against pound, euro among others.
There seem to be a positive sentiments that Trump will introduce various policies that will see investors get better returns on savings and investments in dollars.
Fitch rates naira performance in FX markets
Ealier, Legit.ng reported that Fitch Ratings has expressed caution about the stability of Nigeria's foreign exchange market despite CBN's several assurances.
The agency believes that the Central Bank of Nigeria and other efforts have yet to yield a positive result
There is a glimmer of hope for CBN as Nigeria’s gross foreign exchange reserves rose to $39 billion in October
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Source: Legit.ng
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