Naira Maintains Firm Ground against Dollar in Official, Black Markets as Traders Quote New Rates
- The Nigerian currency, the naira, has remained firm against the US dollar in the foreign exchange market
- Traders in the official market traded the dollar at N1,483.63 per dollar from the N1,483.99 recorded on Friday, June 7, 2024
- The Nigerian foreign exchange reserve also experienced an increase of $110 million to hit $32..80 billion as of June 6, 2024
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
Despite the fall in dollar supply, the Nigerian naira maintained a steady ground against the US dollar in the official market.
The Nigerian currency appreciated marginally against the US dollar on Monday, June 10, 2024, trading at N1,483.62 per dollar as against the N1,483.99 it traded on Friday, June 7, 2024.
Source: Getty Images
The naira remains firm against the dollar
According to data from the FMDQ Exchange, the official rate appreciated marginally by 0.02% from the previous rate recorded on Friday, June 10, 2024.
On Monday, June 10, 2024, traders quoted the dollar at a high of N1,507 per dollar and a low of N1,399.
The Nigerian foreign exchange market recorded a turnover of $161.69 million.
Currency traders in the parallel market also kept the naira steady between N1,490 and N1,495 on Monday, June 10, 2024.
According to reports, the naira’s value improved last week by 0.13%, stronger than the N1,485.99 it quoted in the official market on Friday, May 31, 2024.
Analysts believe the naira’s fortune can only improve if the Central Bank of Nigeria (CBN) continues its weekly interventions by selling forex to Bureau de Change (BDC) operators.
CBN ends forex sales to BDCs?
Ifeanyi Ikechukwu, a forex trader, told Legit.ng in an interview that the CBN's lack of interventions in the FX market has affected the naira’s value against other currencies.
He said that when the apex bank began selling dollars to BDCs, the naira improved as a result.
“Right now, the operators are just scrapping by, looking for forex to buy, and it is putting pressure on the naira.
“Also, the Muslim festival is affecting the naira as most people who traveled for Hajj and other things sourced forex in the open market.”
“The CBN needs to resume its forex weekly sales to the operators to help the naira recovery otherwise, we are looking at N1,500 per dollar in the next couple of days,” he said.
External reserves rise
Reports say the Nigerian external reserves have risen after a 10-week decline, indicating a recovery for the economy.
Data from the CBN shows that the nation’s FX reserve stood at $32.80 billion on June 6, 2024, showing an increase of $110 million to $32.69 billion on May 31, 2024.
The trend has remained consistent over the past six days, with the reserve rising from $32.74 billion on June 3 to $32.77 billion on June 4, then $32.79 billion on June before the current figure.
CBN reduces customs exchange rate
Legit.ng earlier reported that the Nigeria Customs Service has revealed a new exchange rate for calculating import duties at the nation's seaports and airports.
Data obtained from the federal government trading portal showed that as of Sunday, June 9, 2024, importers will be charged N1,447.965 per dollar for import duty.
The new rate represents a 2.51% reduction from the previous rate of N1,485.322 per dollar on Friday, June 7.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
