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The naira has been omitted from the International Monetary Fund (IMF) list of Representative Exchange Rates for Selected Currencies for June 2024.
This is just as the gap between the official and parallel market exchange rates of the naira on Tuesday, June 4, narrowed to N1.04.
The Nigerian currency closed at N1,476.96 to the greenback at the official market compared with N1,478 to the dollar at the parallel market segment.
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Data from FMDQ securities exchange showed that the local currency depreciated marginally on Tuesday, closing at N1,476.96/$ as against N1,476.12/$ which it closed at on Monday.
At the Bureau De Change segment, the naira recorded slight appreciation, closing at N1,478 to the dollar as against N1,480 to the greenback on Monday.
FMDQ securities exchange data further showed that in May alone, the Central Bank of Nigeria (CBN) sold $575 million to banks, the highest in a single month to defend the naira against other currencies.
Meanwhile, the list, which was published on IMF’s official website on Tuesday, features several African countries’ currencies like the Algerian dinar (134.492200), Botswana pula (0.072800), Mauritian rupee (46.478600), South African rand (18.697800), amongst those from other continents.
The IMF’s Representative Exchange Rates list provides a benchmark for currencies, facilitating international trade and financial transactions.
“These representative exchange rates, which are reported to the fund by the issuing central bank, are expressed in terms of currency units per U.S. dollar, except for those indicated by (1), which are in terms of U.S. dollars per currency unit,” the report noted.
Other currencies listed in the fund’s report include Asia: Chinese yuan (7.246300), Japanese yen (157.150000), Indian, rupee (83.065900), Korean won (1,381.600000), Kuwaiti dinar (0.306500), Omani rial (0.384500), Philippine peso (58.524000), Qatari riyal (3.640000), Saudi Arabian riyal (3.750000), Singapore dollar (1.351100), Thai baht (Not Available), U.A.E. dirham (3.672500), and Brunei dollar (1.351100).
Europe: Euro (1.084200), U.K. pound (1.271450), Czech koruna (22.798000), Danish krone (6.879700), Norwegian krone (NA), Polish zloty (3.950100), Russian ruble (89.375500), Swedish krona (10.517890), Swiss franc (0.901100), North America: Canadian dollar (1.363500), Mexican peso (17.633800) U.S. dollar (1.000000), Trinidadian dollar (6.706100)
South America: Brazilian real (5.236700), Chilean peso (916.770000), Peruvian sol (NA), Uruguayan peso (38.786000)
Oceania: Australian dollar (0.664600), New Zealand dollar (NA)
Economic expert, Jonathan Thomas, was quoted as having said the development could reduce foreign investors’ confidence in Nigeria’s economy.
“The absence of the naira from this list may further undermine investor confidence in Nigeria’s economy.
“Nigeria’s economic struggles have been ongoing, with the country facing a daunting task in stabilising its currency and revitalising its economy.
“The IMF has been working with Nigeria to implement economic reforms, but progress has been slow. The absence of the naira from this list serves as a stark reminder of the country’s economic challenges,” he stated.
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