Naira Appreciates by 5.8% at Official Market Against US Dollar As Tinubu’s Govt Secures Support
- The Nigerian currency is starting on a positive note against the US dollar in the official foreign exchange market
- Data shows that the Naira's value improved by 5.8% against the US dollar in the NAFEM window
- This positive performance comes amid expected forex supply from the Central Bank of Nigeria (CBN) into the market
Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.
The Nigerian currency improved its performance against the US Dollar in the official foreign exchange (FX) market, also known as the Nigerian Autonomous Foreign Exchange (NAFEM), on Monday, January 15, 2024.
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According to data from the FMDQ Securities Exchange, the Nigerian currency appreciated against the Dollar on Monday to N838.95/$1.
This represents a 5.8 per cent or N51.50 gain compared to the Friday, January 12 exchange rate value of N890.45/$1.
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It was a strong performance for the Naira against the Pound Sterling and Euro in the official market.
The CBN data shows that the Naira gained N18.16 on Monday to close at N1,086.59/£1 compared with last Friday's rate of N1,104.75/£1.
It also improved against the Euro by N14.16 to settle at N934.79/€1, compared to Friday's rate of N948.95/€1.
Why the Naira improved
A financial analyst, Ademola Soku, explained that the good performance of the Naira could be attributed to the news that the African Export-Import Bank (Afreximbank) successfully arranged the initial disbursement of $2.25 billion out of the expected N3 billion payment.
He stated:
"This fund is expected to provide succour for the Nigerian Forex market, which is currently struggling to meet the demands of foreign investors, companies, and airlines looking to repatriate their funds."
Naira to dollar at unofficial market
However, it was a different story in the Peer-to-Peer (P2P) segment of the unofficial market as the Naira weakened against the dollar on Monday by N25 to trade at N1,284/$1, compared to the previous trading day's rate of N1,259/$1.
Additionally, the Naira depreciated against the US Dollar in the black market yesterday by N15 to sell for N1,280/$1, in contrast to the preceding trading session's exchange rate of N1,265/$1.
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
