Naira Appreciates as Banks and Forex Traders Sell 1 Dollar at New Rate Below N1,600 to Customers
- The Nigerian currency recorded a mixed performance against the United States dollar in the foreign exchange markets
- At the official market, the naira improved in value, while at the unofficial market, it depreciated again
- The official foreign exchange market closed the month of February 2024 higher than the unofficial market
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The naira closed trading in February with a win against the US dollar at the official market.
Data from the FMDQ securities shows that the value of the Naira appreciated to N1,595.11/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, February 29.
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Thursday's rate represents a slight price appreciation of 0.09% or N14.40 against the US Dollar compared to the preceding day's closing rate of N1,609.51/$1.
Also, the Nigerian currency improved its value against the Pound Sterling in the official market yesterday by N20.34 to close at N2,046.19/£1 compared with the preceding session's N2,066.53/£1.
Similarly, the naira strengthened against the Euro by N16.5 to trade at N1,751.64/€1, in contrast to Wednesday's closing price of N1,767.79/€1.
The strong showing of the naira against foreign currencies is thanks to the Central Bank of Nigeria (CBN) flooding the market with more supply.
Checks by Legit.ng show that the value of forex transactions increased by 82.3% or $98.00 million to $217.14 million from $119.14 million on Thursday.
Naira to dollar exchange rate
However, it was a different story for the Naira at the parallel market, as the Naira depreciated against the US Dollar by N50 to sell at N1,500/$1 compared with the previous day's value of N1,450/$1.
The Peer-to-Peer (P2P) trading of the Naira is currently suspended following a clampdown by the Nigerian government on Binance and other cryptocurrency firms.
Nigeria's foreign reserves fall to 2-year low
Meanwhile, in another report, Legit.ng revealed that Nigeria's foreign reserves are now at a two-year low.
The latest data from the CBN showed that Nigeria's reserves dropped to $33 billion amid reduced earnings from crude oil sales. The foreign reserves are a key firepower for CBN in its fight to ensure the Naira stays strong against other currencies.
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Source: Legit.ng
