Naira value falls again to US dollar as NNPC’s $3bn loan deal delay, leaves CBN helpless

Naira has recorded a poor trading day against the top foreign currencies at the official and black segment of the foreign exchange (FX) market on Thursday, August 31, 2023.

This comes as there are growing concerns that the much-celebrated $3 billion emergency loan from the African Export-Import Bank(Afreximbank) continues to drag on.

Afreximbank cannot close the deal except for investors who were supposed to make up the balance of the loan gives a go-ahead.

DailyTrust reports that the investors are having a cold feet over Nigeria's worsening finances and apparent desperation to defend the naira.

Legit.ng had reported that the $3 billion loan agreed by the Nigerian National Petroleum Company Limited (NNPC) was to help the Central Bank of Nigeria stabilise the naira.

Naira to dollar exchange rate

As the deal continues to drag, the pressure of forex demand continues to affect the value of the naira at all forex markets.

At the official market, data from FMDQ securities shows that at the investors and exporters window the naira closing exchange rate was N762.71/$1 on Thursday, August 31, 2023.

This represents a massive drop in value when compared to the N738.18/$1 it closed on Wednesday.

Also, in the black market, the domestic currency depreciated against the Dollar yesterday by N5 to sell at N920/$1 compared with the previous trading day’s N915/$1.

However, Naira performed well against the dollar in the Peer-to-Peer (P2P) window on Thursday as it gained N2 to sell for N918/$1, in contrast to Wednesday’s closing price of N920/$1.