US Dollar Soars 1.82% Against the Naira, Reaches Highest Rate at N855 per $1, Nigeria

Date:

Updated: 12:32 PM, Tue July 25, 2023

US Dollar strengthens against the Naira, reaches highest rate at N855 per $1

The US Dollar has seen a significant surge against the Nigerian Naira, reaching its highest rate at N855 per $1. This increase represents a 1.82% rise in the value of the dollar compared to the previous trading day. The FMDQ Exchange reported that the dollar’s price was raised by N14.22 kobo, contributing to this jump in the exchange rate.

According to data obtained from FMDQ, the closing rate for the US Dollar was N792.04/$1, surpassing the N777.82/$1 rate from the previous trading session. Both currencies traded within the range of N855/$1, marking the highest rate of the day, while also touching a low of N650/$1.

The total value of foreign exchange traded by authorized dealers and their clients at the end of trading was $49.46 million. This indicates a 36.58% drop compared to the previous trading day, where forex worth $77.99 million was transacted.

The black market average rate for the naira to pound saw an increase, reaching N1103.9/£1, which is N29 higher than the previous rate of N1074.9/£1.

Similarly, the naira to euro rate also moved upwards, rising from N929.56/€1 to N952.5/€1. This represents a N22.94 kobo increase in the cost of the European currency.

This fluctuation in exchange rates highlights the volatility of the Nigerian currency against major foreign currencies. It also reflects the economic challenges faced by the country, including inflation, dwindling foreign reserves, and reduced oil prices. These factors contribute to the increased demand for foreign currencies, particularly the US Dollar, and consequent depreciation of the Naira.

It is important to note that while the US Dollar has strengthened against the Naira, these exchange rate fluctuations have varying impacts on different sectors of the economy. Importers and individuals who rely heavily on foreign imports will likely face higher costs due to the devaluation of the Naira. Conversely, exporters may benefit from increased export earnings.

Furthermore, the rising exchange rate has implications for inflationary pressures in the economy, as imported goods become more expensive. This could potentially affect the purchasing power of consumers and contribute to an overall rise in prices.

The Central Bank of Nigeria (CBN) plays a crucial role in managing foreign exchange to stabilize the Naira. They implement various measures to control the demand and supply of foreign currencies, including interventions in the foreign exchange market and the utilization of different exchange rate windows.

In conclusion, the US Dollar has experienced a significant surge against the Naira, reaching its highest rate at N855 per $1. This demonstrates the ongoing challenges faced by the Nigerian economy and highlights the need for effective policies to stabilize the exchange rate and mitigate the impact on various sectors.

Frequently Asked Questions (FAQs) Related to the Above News

What is the current exchange rate between the US Dollar and the Nigerian Naira?

As of [current date], the exchange rate between the US Dollar and the Nigerian Naira is N855 per $1.

How much has the US Dollar strengthened against the Naira?

The US Dollar has strengthened by 1.82% against the Naira compared to the previous trading day.

What was the closing rate for the US Dollar in the most recent trading session?

The closing rate for the US Dollar in the most recent trading session was N792.04/$1.

How much foreign exchange was traded by authorized dealers and their clients at the end of trading?

At the end of trading, $49.46 million worth of foreign exchange was traded, indicating a 36.58% drop compared to the previous trading day.

What is the current exchange rate for the Naira to the British Pound?

The current exchange rate for the Naira to the British Pound is N1103.9/£1.

How much has the Naira to Euro rate increased?

The Naira to Euro rate has increased from N929.56/€1 to N952.5/€1.

What are the factors contributing to the increased demand for foreign currencies and depreciation of the Naira?

The factors contributing to the increased demand for foreign currencies and depreciation of the Naira include inflation, dwindling foreign reserves, and reduced oil prices.

How might the fluctuating exchange rates affect different sectors of the Nigerian economy?

The fluctuating exchange rates may lead to higher costs for importers and individuals relying on foreign imports. However, exporters may benefit from increased export earnings. Additionally, the rising exchange rate could result in inflationary pressures and potentially affect the purchasing power of consumers.

What role does the Central Bank of Nigeria (CBN) play in managing foreign exchange and stabilizing the Naira?

The Central Bank of Nigeria (CBN) plays a crucial role in managing foreign exchange and stabilizing the Naira. They implement measures such as interventions in the foreign exchange market and the utilization of different exchange rate windows to control the demand and supply of foreign currencies.

What are the economic challenges faced by Nigeria that contribute to the volatility of the Naira?

Economic challenges faced by Nigeria that contribute to the volatility of the Naira include inflation, dwindling foreign reserves, and reduced oil prices.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

Shreya Gupta
Shreya Gupta
Shreya Gupta is an insightful author at The Reportify who dives into the realm of business. With a keen understanding of industry trends, market developments, and entrepreneurship, Shreya brings you the latest news and analysis in the Business She can be reached at shreya@thereportify.com for any inquiries or further information.

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