Naira’s Value Rises as Dollar Supply Surges in Official Black Market
- The Nigerian currency appreciated for two consecutive days in both the official and black markets
- On Tuesday, June 11, 2024, the naira emerged stronger to trade at N1,473.66 per dollar from the N1,483.62 it traded the day before
- Also, the foreign exchange market experienced a surge in dollar supply by 138.67% at $383.9 million from $161.69 million the previous day
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The naira stabilised against the US dollar in the foreign exchange market on Tuesday, June 11, 2024, following a surge in Forex turnover at 138.67% in NAFEM.
The naira’s value rose by 0.68% to N1,473.66 per dollar, up from N1.483.62 on Monday, June 10, 2024.
Source: Getty Images
Naira maintains a steady rise against dollar
The slight increase in the naira’s value shows some respite in the exchange rate, reassuring market participants of the resilience of the Nigerian currency.
The naira has maintained a stable stance against the dollar in the last two days, which analysts attributed to the rising foreign reserves.
Data from the FMDQ Exchange shows that traders quoted the dollar at a high of N1,495 per dollar and a low of N1,415.
Forex turnover rises
The Nigerian forex market experienced a substantial surge in FX turnover at 138.67% at $383.91 million from the 39.95% decline recorded the previous day at $161.69 million.
Reports say the surge in FX supply suggests a rebound in market activities and renewed confidence among traders.
In the parallel market, also known as the black market, the naira’s value improved significantly by over 30%, resulting in a trade of N1,482 per dollar.
The black market traders quoted the dollar's buying rate at N1,380 and the selling rate at N1,482 per dollar.
External reserves increase
Legit.ng reported that Nigeria’s external reserves rose 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.
The Central Bank of Nigeria has halted the weekly FX sales to Bureau de Change (BDC) operators, which experts believe propped up naira’s value against the US dollar.
The operators lamented that the naira is suffering due to a drought in the FX supply to the BDC operators and other CBN regulations, which are blamed for the crash.
CBN reduces Customs exchange to clear goods
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
