Naira reverses 2 days gain, falls by N80 against US dollar after CBN’s decision

The naira reversed its two-day gain recorded on the official Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, November 21, 2023.

Data obtained from FMDQ securities showed that the Naira at NAFEM closed at N830.97 against the US dollar.

This represents a 10.8 per cent or N80.83 depreciation compared to Monday, November 20, rate of N750.14/$1.

The weakening of the Nigerian currency comes as the supply of FX decreased by 30.7 per cent or $54.29 million to $112.46 million from the $176.75 million achieved a day earlier.

Also, the Central Bank of Nigeria (CBN) silence on plans for the foreign exchange market affected the Naira.

Legit.ng reported that the central bank on Monday postponed a rate-setting meeting, known as the Monetary Policy Committee (MPC), for a second time since Olayemi Cardoso became the CBN governor in September.

The meeting is important as it provides insight into solutions for various economic challenges, including inflation and exchange rates.

Naira to Dollar at unofficial market

It was the same story for the Naira in the peer-to-peer (P2P) window, as data shows the Naira declined against the greenback during the session by N9 to sell at N1,136/$1 compared with the previous day’s N1,127/$1.

In the black market, also known as the parallel market, the Naira weakened against the Dollar by N5 on Tuesday to close at N1,145/$1, in contrast to the preceding day’s value of N1,140/$1.