Naira Falls to N475 Against US Dollar on Black Market

The Nigerian Naira continues to fall against its global counterparts despite efforts to prop up the local currency value.

The local currency plunged by N3 from N472 it exchanged against the US dollar on Friday to N475 on Monday on the black market. Its lowest in over four years.

This continues against the British pound as the Naira lost N2 to N584, further down from N582 it was sold on Friday.

Against the Euro single currency, the Naira lost N5 from N530 it was traded on Friday to N535 on Monday.

On the Investors and Exporters Forex window, the Naira plunged from N381 per US dollar stipulated by the Central Bank of Nigeria to N389.25/$.

Investors traded $38.86 million on Monday, representing more than 100 percent increase from $12.61 million it traded on Friday.

Lack of dollar liquidity due to falling foreign reserves and low oil prices continues to dictate the Nigerian Naira value.

As stated on this platform, the central bank is gradually losing its power to defend the Naira at the current rate to the US dollar and other global currencies. This was why the currency was devalued twice in the last five months to better accommodate changes in macroeconomic data.

This we expect to continue, especially without COVID-19 cure and rising global uncertainty due to the US-China trade conflict.