Market News
Naira Extends Decline As CBN Adopts I&E Rate - NEW TELEGRAPH
BY Tony Chukwunyem
The naira depreciated against major currencies on the parallel market yesterday as traders reacted to the Central Bank of Nigeria (CBN)’s updating of its website to reflect the Investors and Exporters’ (I&E) window- NAFEX-exchange rate of N410.25/$1. According to data obtained from abokifx.com, naira fell to N487 per dollar on Tuesday from N486/$1 on the parallel market on Monday.
It also declined against the Pound Sterling, dropping to N687 compared with N686 on the previous day. Similarly, the local currency declined against the Euro, sliding to N590 per euro from N587 per euro on Monday. FMDQ data also shows that at N411.56 per dollar, naira closed weaker at the I&E window yesterday, compared with N411.25/$1. CBN had, late on Monday, updated its website to reflect the I&E window- NAFEX-exchange rate of N410.25/$1.
The move, which came about two weeks after the apex bank removed the former official exchange rate of N379/$1 from its website homepage, meant that it had weakened naira by 7.6 per cent against the dollar on the official forex market. However, as at last night, CBN had not indicated if it will alter the N393 to a dollar exchange rate for Bureaux De Change (BDCs). CBN Governor, Mr. Godwin Emefiele, had said last year that the apex bank will pursue exchange rate unification around the I&E window rate. He told journalists at the end of the MPC briefing yesterday that the apex bank was no longer dealing on the N380 per dollar official rate.
