Naira Reverses Direction to Gain N135/dollar From Historic Low, Sets Record in 2023
- The naira on Friday, December 29, 2023, reversed the loss from the previous day as it closed at N907 per dollar
- FMDQ data shows that the amount gained from the previous day represented 13.03% or N135.89 per dollar
- Following the same trend, the unofficial market also appreciated by N10 per dollar to close at N1,215 per dollar
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market
On Friday, December 29, 2023, the Naira reversed from its history low to set a closing record for the year 2023 at the official foreign exchange market known as Nigerian Autonomous.
Source: UGC
The naira closed at N907 per dollar to gain 13.03% or N135.89 per dollar. This represents a massive gain from the N1,043 per dollar it closed the previous day.
According to data presented by FMDQ Securities, the currency’s intra-day high hit N1,224 per dollar, while the intra-day low was N700 per dollar.
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On the unofficial market, the naira appreciated by N10 per dollar to close at N1,215 per dollar from the previous close of N1,225 per dollar.
This signifies a 0.82% gain in the black market as currency traders quoted the buying rate at N1,200 per dollar and the selling price at N1,215, leaving a margin of N15 per dollar
The difference between the official and the black market leaves the market exchange rate gap widened by N307.89 according to TheCable report.
Legit.ng reported that Ben Akabueze, the director-general of the federation's budget office, said the Naira will strengthen in value in the foreign exchange market in 2024.
Speaking in an interview with Channels TV on Tuesday, December 26, 2023, the Budget Office DG said this will be possible as the country expects an increase in dollar supply.
He noted that the Bola Tinubu-led government expects the reforms initiated in 2023 to start yielding results in 2024, which is why it maintains a positive stance on the exchange rate.
Boost for Naira as World Bank predicts diaspora remittances for Nigeria in 2023, FG sets FX rates
Legit.ng also reported that the World Bank has stated that Diaspora remittances to Nigeria would exceed $20 billion by the end of 2023 as total remittances into sub-Saharan Africa rise by 1.9%.
The bank revealed this in its latest Migration and Development Brief released in December. The CBN noted that the global remittances flows would continue to rise in 2023 but at a slower rate.
The bank stated that fixed exchange rates and capital controls were diverting remittances to the region from official to unofficial channels.
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Source: Legit.ng
