Prime Business Africa
The dollar rate dropped by N5.1 kobo or 0.34 percent on Wednesday, November 26, after the naira appreciated against the United States currency in the parallel market.
The dollar exchanged at N1,474.9/$ in the black market, compared to the N1,480 the greenback traded on Tuesday, November 25, according to Naira Rates.
Join our WhatsApp ChannelAlso, the pound continued to trade at N2,204.4 per/£1, indicating the naira is stable against the British currency, as it is against the euro, which remained flat at N1,853.7 per €1 — same rate as the previous day.
In the official window, the dollar exchanged at N1,442/$, slightly above the N1,441 per $1 reported on Monday — reflecting the naira depreciated in value by N1 or 0.06 percent.
According to data obtained from the Central Bank of Nigeria (CBN), the highest rate for the day was N1,445.5 kobo per dollar, and the lowest rate was N1,436.5 kobo/$1.
On Tuesday, the governor of the CBN, Olayemi Cardoso, said Nigeria’s foreign exchange (FX) market now records $500 million as average daily turnover, without the apex bank’s intervention
“What we have in the foreign exchange market in Nigeria today is something that has not happened before,” Cardoso said.
“In the sense that you have a market where there are willing buyers, willing sellers. They come in, they buy at will, they sell at will, and you have a process that is open and very transparent.”
According to the CBN governor, “it is for that reason that, on average, on a daily basis, we have half a billion dollars in turnover, in market activity, with many times the CBN not being a participant in that market”.
“For those of you who will remember how markets used to operate in those days, if the CBN does not intervene, nothing happens. That is now a thing of the past,” he added.
“We have a market that is open, that is transparent, and that plays in accordance with certain rules that everybody has signed up to.
“So these are all the things that have contributed to the way and manner in which our foreign exchange market operates, and which we have had stability in that market.”
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