Naira Depreciated Against the United States Dollar to N470 at Black Market

The Nigerian Naira declined on Friday to a record low of N470 against the United States Dollar on the black market.

This was N5 lower than the N465 it was exchanged on Thursday.

Against the British Pound, the local currency remained unchanged at N600, while against the European common currency it traded at N545.

This is coming two days after the Managing Director and Chief Executive Officer, Financial Derivatives based in Lagos, Mr. Bismarck Rewane, said the Naira could plunge to N475 by November and December given the low oil prices and weak demand for the commodity in the global market.

He explained that the resumption of flights and economic activities would increase the demand for forex, a move that he predicted could hurt the apex bank’s ability to support the Naira or intervene as usual in the nation’s foreign exchange markets to ease liquidity issue.

Rewane said “Rewane said, “Naira [is] likely to depreciate to trade around 470-475 in November/December. Convergence of multiple rates will continue but unification is unlikely.

“The CBN will maintain its forex rationing stance and intensify efforts to keep the naira stable. External reserves to likely fall towards $34bn in the coming months.”