The Central Bank of Nigeria's (CBN) forex rate news is a crucial aspect of Nigeria's economy, and understanding its fluctuations is essential for businesses and individuals alike. The CBN's exchange rate is determined by supply and demand, with the bank intervening when necessary to stabilize the market.
In Nigeria, the exchange rate is often influenced by factors such as oil prices, inflation, and economic growth. The CBN's monetary policy can also impact the exchange rate, with changes in interest rates affecting the value of the naira.
The CBN's intervention in the forex market can be in the form of buying or selling dollars to stabilize the exchange rate, which can have a significant impact on the economy. This intervention can also affect the availability of forex for importers and exporters.
For more insights, see: How Much Is $500 Nigeria Currency Is Us Dollars
Nigeria Foreign Exchange Rate
The Nigeria foreign exchange rate has been a topic of interest for many. As of June 2018, the exchange rate for the US dollar was 305.25 NGN/USD. This rate has been recorded monthly since December 2001.
The Central Bank of Nigeria (CBN) has introduced a new system to enhance transparency and governance in the foreign exchange market. The Electronic Foreign Exchange Matching System (EFEMS) is set to be fully implemented by December 01, 2024, following a two-week test run.
In June 2018, the exchange rate for the Japanese Yen was 2.76 NGN/JPY, for the Swiss Franc was 307.59 NGN/CHF, for the British Pound was 401.80 NGN/GBP, and for the Euro was 355.86 NGN/EUR.
The EFEMS will provide real-time prices and buy/sell orders, enhancing price discovery and providing a clear view of market activity. The CBN will collaborate with the Financial Markets Dealers Association (FMDA) to publish the rules guiding the use of EFEMS.
Here are the related indicators for Nigeria Foreign Exchange Rate:
Naira Performance
The naira exchange rate has been quite volatile, but the CBN's aggressive interventions have helped to ease pressure on the exchange rate. The naira exchange rate appreciated by 7 basis points to N1540.65, according to data obtained from the FMDQ platform.
The CBN's sustained FX intervention has reduced naira's year-end volatility, and the bank sold $40 million to banks, bringing the total FX sales for the week to $237.7 million. This is a significant increase from the previous week's sales of $124.6 million.
The parallel market rate settled at N1,655 per US dollar, which is a depreciation of N5 per greenback in the informal currency market. The CBN has opened a window for Bureau de Change to buy up to $25,000 at the official rate from local banks.
The CBN's efforts to stabilize the naira exchange rate have been successful, and the exchange rate has remained relatively stable ahead of the holiday season. The naira gained N4 to settle at N1,538 in the official market after the CBN conducted another FX auction sale with authorised dealer banks on Friday.
See what others are reading: Market Exchange Rate
Frequently Asked Questions
What is the dollar rate today in Nigeria?
The current exchange rate for US dollar to Nigerian naira is 1,592.030, with a slight decrease of -0.215% from yesterday. Get the latest updates on the dollar rate in Nigeria.
What is the current CBN pounds rate?
The current CBN pound rate is ₦1,934.2199 as of December 27, 2024. This rate represents a 0.54% increase from the rate at the start of the week.
How much is $1 to Naira bank rate today?
As of today, $1 is equivalent to approximately 1,645.25 Naira at the current bank rate. The exchange rate has fluctuated by 5.15% since yesterday.
What is the interbank fx rate?
The interbank FX rate is the constantly fluctuating price at which banks trade currencies with each other. It's the official live conversion rate for a given currency pair, reflecting the current market value.
Sources
- https://www.ceicdata.com/en/nigeria/foreign-exchange-rates/foreign-exchange-rate-cbn-month-end-us-dollar
- https://frontierview.com/insights/the-nairas-slide-following-the-cbns-currency-reforms/
- https://www.ngnrates.com/cbn-central-bank-of-nigeria
- https://www.zawya.com/en/world/africa/nigeria-cbn-introduces-electronic-transactions-in-foreign-exchange-market-l5agx77z
- https://dmarketforces.com/naira-mixed-as-cbn-turns-aggressive-with-fx-interventions/
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