Exchange rate crashes as Naira moves up against Dollar

The Nigerian currency, on Tuesday, July 25, gained grounds against the United States of America Dollar at the parallel segment of the Nigerian Foreign Exchange Market.

The appreciation in value came a few hours after the Central Bank of Nigeria, CBN, announced the outcome of its Monetary Policy Committee, MPC, meeting.

Just after the announcement, the exchange rate crashed at the black market as the Naira further appreciated against the greenback.

The local currency dropped four point points to trade at N363 against the dollar, against the rate of N367, which it exchanged for on Monday, July 24.

Meanwhile, against the British Pound Sterling, the naira traded at the rate of N475 at the black market and the exchanged at the rate of N420 against the European Single Currency, Euro.

At the Bureau De Change (BDC) window, the Naira was sold at N362 to the dollar, while the Pound Sterling and the Euro exchanged at N477 and N419, respectively.

ALSO SEE: Naira still struggling to converge between NAFEX, official rates

Trading at the investors’ window saw the Naira closing at N369.50, while it also closed at N305.75 at the interbank market.

Traders at the market attributed the further appreciation of the Naira to the outcome of the MPC meeting of the CBN.

Meanwhile, Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), said that the mop up of liquidity by the CBN was already impacting the exchange rate positively.

Gwadabe said that the commitments of the apex bank in driving its liquidity mop up in the economy had sent panic to the camps of currency speculators.

According to him, critical stakeholders in the financial market are, by the feat of the apex bank, witnessing a convergence in the prevailing rates between the parallel market and the BDCs.