Prime Business Africa
On Friday, March 20, the black market witnessed a N0.23 kobo decline in the foreign exchange (FX) rate of the United States dollar (USD), which increased to N1,400.8 kobo per $1.
According to Naira Rates, the black market aggregator, the FX rate for the USD increased from the N1,398.79 kobo per dollar recorded on Thursday, March 19.
Join our WhatsApp ChannelWhile the naira depreciated by 0.23 percent against the United States legal tender, the Nigerian currency continued to hold its ground against the pound and euro in the black market.
The aggregator said the pound exchanged at N1,919.99 kobo per £1 in the parallel market, replicating the previous day’s exchange rate, while the euro traded flat at N1,641 per €1.
Prime Business Africa gathered that the naira depreciated against the dollar at a time Nigeria is experiencing a decline in its foreign reserves, which dropped below $50 billion on March 13 to $49.97 billion.
However, according to data obtained from the Central Bank of Nigeria (CBN), the foreign reserves further dropped to $49.83 billion as of March 17, representing a $143.34 million or 0.28 percent decline.
The currency of a country could depreciate in value if foreign exchange reserves decline, as it reduces the central bank’s ability to defend the currency and fuels speculation that there is not enough FX, leading to hoarding and resulting in the value of foreign currencies appreciating against the local currency.
Nigeria’s ministry of finance had warned on March 11 that the Middle East conflict involving the United States, Israel and Iran might affect capital inflows into Nigeria.
For press releases, tip-offs, and corporate information, call 08149575257 (hotline), email: [email protected] and [email protected]
Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
