Exchange Rate in Nigeria
Nigeria - Exchange Rate
Naira depreciates drastically following scrapping of currency peg in June
The naira has been weakening against the U.S. dollar since June when the Central Bank scrapped the currency peg that had kept it at an artificially-high value of around 198 NGN per USD for over a year. Directly after the peg was abandoned on 20 June, the currency lost over 40% of its value against the USD and fell to 282 NGN per USD. While the Central Bank had pledged to move to a free-floating exchange regime, it intervened in the foreign exchange market in the weeks after the devaluation to keep the naira within a narrow range of 282 to 285 NGN per USD. In mid-July, the Bank reduced its interventions, causing the naira to depreciate further. On 28 July the currency fell to a record-low of 322 NGN per USD, which marked a 14.2% depreciation over the same day in June and a 61.8% depreciation in annual terms. Since then, the naira has been fluctuating at low levels. On 18 August it traded at 321 NGN per USD.
Most analysts agree that the abandonment of the currency peg was long overdue. Greater exchange rate flexibility sparked hopes that the shortage of hard currency and restrictions on imports, which were partly behind Nigeria’s disappointing economic performance in Q1, would ease. Nevertheless, the country still faces significant headwinds. The depreciation of the naira prompted the Central Bank to hike interest rates to a record high in July in an effort to combat rising inflation, which risks restraining economic activity. Ongoing militant attacks on oil facilities are exacerbating the situation by hampering oil production in the country.
FocusEconomics Consensus Forecast panelists expect the naira to trade at 291 per USD at the end of 2016. For 2017, the panel foresees the NGN trading at 306 per USD.
Nigeria - Exchange Rate Data
|Exchange Rate (vs USD)||155.2||167.5||196.5||304.5||305.5|
5 years of economic forecasts for more than 30 economic indicators.
Nigeria Exchange Rate Chart
Source: Thomson Reuteurs
|Bond Yield||14.27||0.0 %||Jul 11|
|Exchange Rate||306.5||3.08 %||Jul 11|
|Stock Market||0.1||0.0 %||Jul 11|
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July 15, 2019
Consumer prices rose 1.07% on a month-on-month basis in June, down slightly from May’s 1.11% climb, which had marked the sharpest increase in nearly a year.
July 3, 2019
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) climbed to 54.8 in June from 52.9 in May, which had marked the lowest reading since June 2017.
June 17, 2019
Consumer prices rose 1.11% on a month-on-month basis in May, up from April’s 0.94% climb and the sharpest increase in 10 months.
June 7, 2019
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) edged down from 55.5 in April to 52.9 in May, the lowest reading since June 2017.
May 21, 2019
At its 20–21 May meeting, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) left the monetary policy rate as well as all other monetary policy parameters unchanged, broadly in line with market expectations.