Naira Closes at N869.39/$1 in Official Market, Falls Further in Black Market
- The Nigerian currency is starting the new week on a positive note against the US dollar in the official foreign exchange market
- Data shows that the Naira's value improved by N25 against the US dollar in the NAFEM window, which is the official market
- There is a strong prediction from ABCON that the Naira will close the year at a better rate compared to 2023
Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.
Naira improves in value against the United States Dollar in the official market to close the first week of January 2024 strong.
Data from FMDQ securities shows that Nigerian currency gained N25.84 or 2.9% against the United States Dollar to close at N869.39 in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, January 5, 2023.
Source: Getty Images
This is a better performance when compared to N895.23/$1 exchange rate reported on Thursday, January 4, 2023.
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Naira to dollar unofficial market
In the unofficial market the Naira also posted a positive performance against the dollar in the Peer-to-Peer (P2P) window.
Data shows naira improved by N8 to close at N1,218/$1 on Friday compared with the previous day’s N1,226/$1
However, Nigerian currency lost N5 against the US Dollar in the black market to end the week at N1,245/$1, in contrast to Thursday’s closing price of N1,240/$1.
ABCON predicts naira to dollar exchange rate in 2024
Meanwhile, the Association of Bureaux De Change Operators of Nigeria (ABCON) has projected that the naira will close against the dollar in 2024 at an exchange rate of N900/$.
In an exclusive interview with Legit.ng, Aminu Gwadabe, ABCON president, also shared his expectations on the convergence between official and unofficial market exchange rates.
Speaking on the outlook for 2024, Gwadabe outlined expectations for a better year for the naira, particularly in the latter part of the year.
He said:
"We expect the slide of the value of the naira to continue in the first quarter of 2024 as a result of the acute shortage of liquidity carried forward from 2023 from an average of N500/$ to N1300/$ lately in the parallel market, leaving the speculators with no any market challenger that the BDCs use to performed.
"As the apex bank continue to walk their talk in second quarter of 2024 in lifting capital control, clearing backlog,enhancing market confidence,diversify foreign inflows we will begin to see the convergence of the official and official market levels.
"Finally we expect naira to end in 2024 at N900/$ with the full convergence of both the official and unofficial market."
Nigeria Customs sets new exchange rate to clear imported goods
Earlier, Legit.ng reported that the Nigeria Customs Service adjusted the foreign exchange rate for clearing imported goods at Nigerian ports.
The new rates were intended to reflect the depreciation of the naira against the dollar across the foreign exchange markets.
With the new rate, the cost of imported goods will increase nationwide.
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Source: Legit.ng
Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.
Aminu Gwadabe (President at Association of Bureaux de Change Operators of Nigeria) Alhaji Aminu Gwadabe is the president of the Association of Bureau De Change Operators of Nigeria (ABCON) that represents the interests of licensed Bureau de Change operators in Nigeria. Gwadabe comments on issues relating to the foreign exchange market, currency exchange rates, and economic policies in Nigeria over the years.
