No more N1,000/$: Naira recovers from record low, gains massive N207 in official market
- The naira showed improvement on Thursday, January 11, 2024, after the previous day's low
- According to official data, the naira closed at N874.79 per dollar to reflect an improvement in value
- This is against the N1,082.32 per dollar it closed on Wednesday, reflecting a marginal gain
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The naira to dollar rate closed impressively in the official market on Thursday, January 11, 2024.
The official Nigerian Autonomous Foreign Exchange Market (NAFEM) data showed that the Nigerian currency closed at N874.79 per dollar after it maintained a record low the previous day.
Source: Getty Images
Legit.ng reported that the naira appreciated marginally against the US dollar on Wednesday, January 10, 2024, in the official market, remaining above the N1,000 per dollar mark.
On Thursday, however, the naira bounced back to massive gain, recording a N207.53 per dollar increase from the N1,082.32 per dollar it closed on Wednesday. This represents a 19.17% improvement.
FMDQ data shows that the intraday high was N1,264.96 per dollar, while the intraday low was N475 per dollar.
The total forex turnover for the day, however, declined by 54.49% to close at $110.41 million
In the unofficial market, however, the naira went in a different direction. The Nigerian currency depreciated by 0.40% to close at N1245 per dollar.
Read also:
- Naira Troubles Continue in 2024, Crashes to Lowest Level in History Against US Dollar
- ABCON Foresees Stronger Naira Exchange Rate Against US Dollar in 2024
- Expert Speaks On Naira to Dollar Exchange Rate in 2024
CBN settles airlines
In a recent development, the CBN disbursed $61.64 million to foreign airlines through various banks.
This brings the total backlog of forex cleared in the last three months to $2 billion.
Hakama Sidi Ali, the CBN acting director of the corporate communications department, expressed belief that the move will help to alleviate the current pressure on the country's exchange rate with the payment.
She said:
“It is anticipated that this initiative by the CBN should provide a considerable boost to the Naira against other major world currencies and further increase investor confidence in the Nigeria economy.”
Samuel Oyekanmi, a macroeconomic analyst also opined that the move restores some level of confidence in the Nigerian FX system for foreign investors, especially in the aviation industry.
He added,
"It also sends a signal of FX liquidity in the economy, hence reducing the pressure on the exchange rate both at the official and parallel FX market."
Expert speaks on naira to dollar exchange rate in 2024 as FG introduces new dollar account charges
Legit.ng reported that Bismarck Rewane, the chief executive officer (CEO) of Financial Derivatives, has revealed his expectations for Nigeria’s exchange rate market.
Speaking at a recently held Parthian Partners 2024 economic outlook session in Lagos attended by Legit.ng, the renowned economist said he expects the Naira to appreciate in the forex markets in 2024.
He also noted that inflation is likely to “drop in 2024 and could go as low as 17% in 2025."
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Source: Legit.ng
