Naira drops to N435 / $ 1 in official market as CBN adjusts exchange rate

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The Nigerian naira fell to N435 against the dollar in the official market on Friday.

It comes as the Central Bank of Nigeria (CBN) has adjusted the country’s exchange rate to his website at N413.49 / $ 1 – in what appears to be another devaluation this year.

In May, the summit devalued the naira from N379 to N411 per dollar of adopt window (I&E).

Although Godwin Emefiele, Governor of the CBN, had rejected innuendo about the devaluation of the naira, says Nigeria operates a managed float exchange regime.

A managed floating exchange rate regime occurs when exchange rates fluctuate daily, but central banks attempt to influence the rate by buying and selling currencies to maintain a specific range.

TheCable checks showed that the local currency, which opened for trading at an indicative price of N 420.67 per dollar, fell to N 435 at the end of trading on Friday, according to FMDQ OTC Securities Exchange, a platform which oversees foreign exchange transactions in Nigeria.

The naira has traded up to 445.50 naira to the dollar during intra-day trading.

CBN spokesperson Nwanisobi Osita told TheCable that the market determines the exchange rate.

“If you see N413, then this is what it is. The market determines the rate, ”Osita said.

The umbrella bank has devalued the exchange rate several times since March 2020 as it strives to bridge the disparity between official and shadow market rates.

In the parallel market, the local currency stabilized at N570 for a dollar.

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