Naira Trades at New Rates in Official Window as Nigeria’s FX Reserves Grows

• The Nigerian currency, the naira, depreciated marginally in the official window on Tuesday, December 24, 2024
• The naira traded closing trading at N1,540.65 per dollar after opening at N1,541 in EFEMS
• Available data shows that the naira’s depreciation represented about 0.07% relative to a 0.04% gain the previous day

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian currency, the naira, traded lower in the FX market on Tuesday, December 24, 2024, depreciating marginally to N1,540.65 per dollar.

The local currency opened trading in the Electronic Foreign Exchange Market (EFEMS) at N1,541, gaining 0.04% before closing at the new rate.

Naira falls marginally

Information from the MDQ Exchange shows that the naira’s value fell slightly by 0.07% to close at N1,540.65 per dollar.

Currency traders quoted the dollar at a high of N1,542 and a low of N1,437.35 per dollar.

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The development comes amid a rise in Nigeria’s foreign exchange reserves.

Nigeria’s FX reserves rise

Data from the Central Bank of Nigeria (CBN) shows that the country’s gross foreign exchange reserves hit $40.848 billion, a three-year high.

According to reports, the current Reserves can fund nine months of imports and economic activities.

Diaspora remittances increase

CBN said that Nigerians abroad display more confidence in the economy by sending FX home via International Money Transfer Operators (IMTOs).

Per the apex bank, diaspora remittances via IMTOs hit $4,22 billion from January to October, more than the $2.62 billion reported in the same period last year.

Cardoso, CBN governor, said the remittance increase is 61.1% in the last 12 months, noting that it increased from $336.61 million in September to $402.38 million in October 2024.

He disclosed that the rise is due to efficiency in the remittance process, good government policies, and the increasing confidence of Nigerians abroad in the economy.

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Naira begins week on positive note against dollar as external reserves rise to 3-year high

The naira begins the week on a positive note against the dollar

Legit.ng earlier reported that the naira started the week positively against the US dollar, gaining 0.14% in the official Electronic Foreign Exchange Market System (EFEMS).

The naira appreciated by 14 basis points, closing at N1,539.55 per dollar on Monday, December 23, 2024, an improvement from the previous day’s value.

Data from the FMDQ Exchange showed that the Central Bank of Nigeria's (CBN) positive intervention sales helped keep the local currency afloat.

Source: Legit.ng