The Nigerian currency, the naira, reversed some of its gains as its value weakened further against the US dollar.
Data obtained from the Central Bank of Nigeria showed that in the Nigerian Foreign Exchange Market (NAFEM) on Monday, February 23, the naira fell by N2.92 or 0.22% to N1,349.24/$1 from N1,346.32/$1 recorded last Friday.
Similarly, the naira also depreciated against the pound sterling, losing N6.62 to close at N1,821.87/£1, compared with the preceding session’s N1,815.25/£1.
While against the euro, it fell by N6.80 to settle at N1,591.42/€1, down from N1,584.62/€1.
At the GTBank forex desk, the naira weakened by N1 against the dollar, quoting N1,357/$1 versus the previous session’s N1,356/$1.
The naira also fell in the black market, losing over N10 against the dollar. Abdulahhi, a forex dealer, told Legit.ng that the new exchange rate follows renewed demand in the market. “I am currently selling dollars at N1,375/$1 and buying at N1,355/$1.
The pound is trading at N1,845 to sell and N1,805 to buy, while the euro is also moving steadily in the market. “It seems this week the dollar will return to over N1,400. I have been getting a lot of request.”
The nation reports that the CBN, for the first time in a long time, bought dollars off the market after warning that excessive dollars could hurt the economy.
The CBN bought $189.80 million last week to reduce excess dollar liquidity and ease pressure on the naira, according to a TrustBanc Financial Group Limited report.
The firm noted that the currency gained N9.09 week-on-week at the official window to close at N1,346.32 per dollar, while the parallel market strengthened by N60 to N1,340 per dollar.
It also stated that the gap between both markets narrowed significantly to 0.47% from 3.29%, signalling closer alignment in exchange rates.
Based on CBN data, here is a breakdown of the naira’s performance against selected foreign currencies in the NAFEX market (selling rates):
CFA: N2.41
Yuan/Renminbi: N195.28
Danish Krona: N212.97
Euro: N1,591.42
Yen: N8.72
Riyal: N359.63
South African Rand: N84.33
Swiss Franc: N1,740.05
Pound Sterling: N1,821.87
US Dollar: N1,349.24
UAE Dirham: N367.32
