No More N1k/$: Naira Rises by Over N200 Against Dollar, Nears Tinubu’s Govt Exchange Rate Target
- The Nigerian currency started off the new week with an improved performance against the dollar in the official market
- The Naira's strong performance comes after hitting a record low with poor performance on the last trading day
- However, it was a different story for the Naira at the two unofficial foreign exchange markets
Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Nigerian currency improved against the US Dollar on Monday, December 11, 2023, after falling to a record low at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Data from FMDQ securities showed that the Naira closed on Monday at N864.29 to one dollar at the official market.
Source: Getty Images
The Monday closing exchange rate represents a 27.16% increase or a gain of N234.76 from the all-time low of N1099.05/$ recorded last Friday, December 8, 2023.
Additionally, the latest exchange rate is closer to achieving Tinubu's government's December exchange rate target.
Bloomberg reported that Taiwo Oyedele, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, stated that the government views the fair price for the dollar as between N650 and N750.
Naira to dollar at unofficial market
It was, however, a different story for the Naira in the unofficial markets, which include the parallel market, also known as the black market, and the peer-to-peer (P2P) market.
In the black market, Vanguard reports that the Naira depreciated on Monday to N1,205 per dollar from N1,185 per dollar last Friday.
However, at the P2P segment, mostly used by fintech, checks by Legit.ng showed that the Naira exchanged to the dollar at N1,235 from the previous day's rate of N1,201/$.
Economist sets new exchange rate
Earlier, Legit.ng reported that the Economist Intelligence Unit (EIU), a research and analysis firm, predicted that the Naira would close in 2023 with an exchange rate of N848/$ in the official market.
The EIU also said by the end of the following year (2024), the Naira would be exchanged at N861.5 for a US dollar.
In the same vein, the EIU predicted that the pressure on the Naira would ease in 2024 without CBN implementing harsh measures.
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Source: Legit.ng
