Naira Gains Against US Dollar, Pound but Unchanged Against Euro

The Nigerian foreign exchange market experienced a slight improvement in rates on Wednesday as the Nigerian Naira gained against the United States dollar and the British Pound.

On the black market, the Naira gained N3 to exchange at N477 to a US dollar on Wednesday, better than the N480 it traded on Tuesday.

Similarly, against the British Pound, the local currency was exchanged at N608. A N2 improvement from N610 it sold on Tuesday.

However, the Naira remained unchanged against the Euro single currency at N550.

The Naira plunged to a record-low against global counterparts following the change in Nigeria’s economic fundamentals and the drop in foreign revenue generation due to the disruption of global economy by COVID-19.

On the Investors and Exporters Forex window, the Naira exchanged at N386 to a US dollar on Wednesday. Investors and exporters traded $227.29 million on the platform during the trading hours of Wednesday.

The Central Bank of Nigeria (CBN) recently adjusted its official foreign exchange rate from N306/$ to N360 a US dollar.

But the persistent fall in oil prices and broad decline in revenue generation weighed on the apex bank’s ability to support the forex market through its intermittent interventions. This has forced the central bank to discontinued sales of forex to the Bureau De Change and other key forex operators.

The decision increased forex scarcity, negatively impacted economic activity and expected to drag the nation deep into recession in the third quarter of the year.