CBN Releases New Exchange Rate as Naira Gains against the Dollar in All Markets
- The Nigerian currency’s value improved against the US dollar on Thursday, December 12, 2024
- The naira gained across all foreign exchange markets after a brief pause on Wednesday, December 11, 2024
- The naira appreciated in the official foreign exchange market, trading at N1,534 and N1,680 in the parallel market
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The value of the Nigerian currency, the naira, improved in the official and parallel markets as demand for the dollar declined.
Data from the Central Bank of Nigeria (CBN) shows that the naira appreciated by 0.85% to gain N13 in the Electronic Foreign Exchange Marching System (EFEMS).
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Naira gains in official and black markets
Buyers quoted the dollar at N1,532 on Thursday, December 12, 2024, relative to N1,545 recorded the previous day.
In the parallel segment of the foreign exchange market, the naira also appreciated, trading at N1,680 per dollar as against the N1,715 recorded on Wednesday, December 11, 2024.
Experts believe that the gain was due to moderate demand for the US greenback despite the presence of speculators in the black market.
Authorised dealers in the official market priced the dollar at a high of N1,550 on Thursday, December 12, 2024, higher than the N1,557 recorded the previous day.
Dealers quoted the dollar at an intra-day low of N1,515, the same rate as the previous day.
The naira reversed its five-day gains earlier on Monday, December 9, 2024, as demand increased for the dollar among end users, leading to depreciation across all markets.
Analysts shares reason for naira’s gains
Analysts believe the naira rally on Thursday, December 11, 2024, was due to several factors, including the newly introduced EFEMS and dollar glut in the FX markets.
Janet Ogochukwu, a senior banker and economist, said the naira’s recovery was due to the transparency of the EFEMS and the dollar glut. Nigeria is currently basking in the euphoria of the just-concluded successful Eurobond.
“Many factors are responsible for the naira’s gain. The country successfully carried out Eurobond sales, which attracted investors and saw more forex inflows in the economy.
“Also, many Nigerians are returning from overseas with dollars, adding them to the economy. Also, the Electronic Matching System by CBN promotes transparency in the forex market, allowing the naira to find its true value,” she said.
CBN slashes FX rates for Customs duty
Meanwhile, Legit.ng earlier reported that the CBN reduced the Customs duty for cargo clearance in Nigeria's air and seaports.
The apex bank slashed the rate as the naira recently continued its gains across all market segments.
Data from the Customs trade portal shows that the CBN slashed the rate from N1,533.29 to N1,532.594 as of Wednesday, December 11, 2024.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
