Results Are In: Nigeria’s New Official Exchange Rate After Currency Float

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The official floating of the Naira opened at the Interbank on Monday, 20th of June after decades of a Naira peg by successive Nigerian Governments and Central Bank Governors.

The CBN Governor, Godwin Emefiele had last Wednesday announced to the world that Nigeria would be introducing a new exchange rate policy that will see the price of the dollar dictated by market forces rather than a fixed exchange rate.

We have been monitoring activities all day and after several speculations can now reveal a summary of what transpired at the market.

Highlights

The naira was quoted at 254 when the interbank foreign-exchange market opened on Monday, removing the peg of 197-199 that the central bank had in place from February 2015.Amount sold was  US$532,867,169.11The highest rate bidder for the day was NGN382.00/US$The lowest rate traded on Monday NGN197.00/US$The exchange rate closed at NGN280.00/US$ according to ReutersFMDQ Websitesuggest a closing spot price of N255 /$1No of banks that traded today were 21The exchange rate therefore depreciated by 29% assuming FMDQ spot ratesOur sources indicate Parallel market rates closed at N345According to Reuters “The central bank started auctioning dollars in the spot and forwards markets around midday to try and clear a backlog of orders for hard currency.” They also reveal that “the central bank started auctioning dollars in the spot and forwards markets around midday to try and clear a backlog of orders for hard currency”.

(NAIRA METRICS)

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