Fakoyejo OlalekanOn Monday, the average rate to exchange the naira to the dollar in the black market increased by N4 or 0.53%, as the naira shed some value to the American greenback.
According to Naira Rates, a parallel market rate aggregator, the naira was traded for the dollar at a rate of N758.5/$1 during trading, up from Friday’s N754.5/$1.
It was revealed that the naira also depreciated against the British pound, as foreign exchange buyers paid N5.1 or 0.53% more to trade the pound sterling, as the cost increased to N966.9/£1, from N961.8/£1 rate.
Prime Business Africa gathered that the European currency, the euro, also appreciated in value, as it was sold at N830.3/€1 during trading.
Note that last week Friday, the naira had exchanged for the euro at a rate of N825.9/€1, representing an increase of N4.4 kobo or 0.53% in the price of the United Kingdom currency.
In the investors’ and exporters’ window of the official market, foreign exchange trade didn’t occur on Monday, as the Federal Government announced a public holiday on Monday to celebrate 12 June, which is Nigeria’s Democracy Day.
Meanwhile, Lagos-based economic analyst, Razaq Abiola, said the suspension and arrest of the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, on Friday, will affect the exchange rate movement.
Abiola told Prime Business Africa that the suspension of Emefiele which is part of the steps the government is taking to reform the foreign exchange market, will result in the devaluation of the naira in the official market.
While the naira to dollar exchange rate closed Friday’s session at N472.50/$1, Abiola projected that the rate will hit between N600-N630, while the rate in the black market will reverse to N650/$1, due to the devaluation in the official market.
“I expect that policy orientation would gradually tilt towards liberalisation of the FX market, with a good dose of regulation that should ensure the system is not overheated and exchange rate find an equilibrium within a comfortable threshold,” Abiola stated.
The analyst, in his projection, said: “I expect the Naira to experience notable depreciation to about N600/N630 range against the greenback whilst we should see some appreciation of the Naira to about N650/USD at the parallel market.”
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