Naira Continues Recovery, Gains 0.34% Against Dollar
- The Naira rallied against the United States Dollar in the Nigerian Foreign Exchange Market
- The local currency has also appreciated against the pound sterling and the euro
- In the parallel, black market, the naira depreciated ground against the US Dollar
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian currency continued its recovery against the United States Dollar in the Nigerian Foreign Exchange Market (NFEM) on Thursday, March 12 to N1,371.51/$1.
Data from the Central Bank of Nigeria showed that the naira improved by N4.68 or 0.34% on Thursday when compared with it was traded on Wednesday at N1,376.19/$1.N4.68 or 0.34%
Source: Getty Images
Naira to dollar exchange rate
The naira also strengthened against the Pound Sterling, rising by N10.67 to N1,834.80/£1 from midweek’s N1,845.47/£1.
Against the euro, it gained N49.62, closing at N1,581.89/€1 compared with N1,631.51/€1 in the previous session.
In the parallel market, the naira rose N10 against the US dollar to N1,410/$1, up from N1,420/$1 the day before, while at GTBank’s FX desk, it gained N16 to N1,391/$1 from N1,407/$1.
Analysts attributed the easing pressure in the foreign exchange market to inflows from foreign investors, exporters, and non-bank corporates.
Gross external reserves are now above $50 billion the highest since 2009 giving positive outlook for the naira.
Source: Getty Images
CBN resumes dollar sales
The CBN last week resumed dollar sales after accumulating dollars in previous weeks to manage the naira’s appreciation at the NFEM.
The apex bank sold $314.2 million, representing about 25 percent of total FX inflows.
As of last week, total FX inflows stood at $1.26 billion, according to a report by Coronation Merchant Bank’s research department.
The report highlighted that foreign portfolio investors (FPIs) accounted for the largest share, contributing $518.7 million (41.3%) of total inflows, BusinessDay reports.
Exporters contributed $159.1 million (12.7%), non-bank corporates $135.5 million (10.7%), individuals $110.9 million (8.8 percent), with the remainder coming from other sources.
Snapshot of Naira selling rates in the official market:
- CFA: N2.43
- Yuan/Renminbi: N199.67
- Danish Krona: N211.66
- Euro: N1,581.90
- Yen: N8.63
- Riyal: N365.45
- South African Rand: N82.38
- Swiss Franc: N1,752.95
- Pounds Sterling: N1,834.80
- US Dollar: N1,371.51
- WAUA: N1,877.79
- UAE Dirham: N373.36
BDC operators list reasons for naira's recent appreciation
Earlier, Legit.ng reported that the Association of Bureaux De Change Operators of Nigeria (ABCON) has commented on the recent rise in the value of the naira against the US dollar in the official exchange market.
In a statement, ABCON president Aminu Gwadabe said the naira’s appreciation shows that the Central Bank of Nigeria’s (CBN) policies and foreign exchange reforms are working well.
Source: Legit.ng
