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Exchange Rate

Naira Falls on Liquidity Issue

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Bitcoin is not a physical currency like the naira or dollars

Naira declined further on Wednesday as liquidity remained a challenge at the black market.

The Nigerian Naira depreciated by N3 to N478 against the United States Dollar, down from N475 it exchanged on Tuesday.

While against the European common currency it declined by N4 from N553 it traded on Tuesday to N557 on Wednesday.

But adjusted slightly against the British Pound as it gained N1 from N608 on Tuesday to N607 on Wednesday. Still, the lowest for the local currency in over 12 weeks.

Against Bitcoin, the Naira declined to N8.527 million, down from about N7.5 million it was exchanged a week ago.

Ethereum also gained around 30,000 to N228,200 against the Nigerian Naira while Litcoin stood at N35,501.91 per coin.

Last week, the Managing Director/Chief Executive Officer, Mr Bismarck Rewane, attributed the falling Naira value to weak revenue generation and rising dollar demand due to the reopening of businesses.

He said other factors like the International Monetary Fund conditionality for the $3.4 billion loan may come to play and force the central bank to devalue the Naira again to N400 per United States Dollar.

As Nigeria ponders IMF’s conditionalities, CBN could succumb to pressure and devalue the naira to N390-400/$,” he stated.

Source: Naija News

Is a foreign exchange research analyst, contributing author on New York-based Talk Markets and investing.com, with over a decade experience in the global financial markets.