Naira Appreciates by Over N67 Against US Dollar, Traders Sell at New Exchange Rate

• The Nigerian currency has once again recorded a strong performance in its recovery against the US dollar in the foreign exchange market
• Checks showed that the naira gained over N100 in just 24 hours in both the official and unofficial markets
• The new exchange rate for the naira once again shows that the recent moves by the Central Bank of Nigeria are working

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience and in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The naira again appreciated against the US dollar in the official market, also known as the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Data from FMDQ securities shows that the Nigerian currency rose in value to N1,492.61/$1 on Wednesday, March 20, 2024.

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Naira to dollar exchange rate nears N1,300/$ as CBN clears FX backlog

The exchange rate on Wednesday is 4.4% or N67.96 appreciation compared to N1,560.57/$1, which was transacted on Tuesday, March 19.

This happened as the value of forex transactions recorded midweek stood at $268.29 million on Wednesday, 37.5% or $73.16 million higher than the $195.13 million achieved the previous day.

Also, in the official market, the CBN data shows that the naira weakened against the pound sterling in the official market on Wednesday by N104.84 to trade at N1,985.38/£1 versus the previous day’s N1,880.54/£1.

While against the Euro, the Nigerian currency lost N89 to sell for N1,696.54/€1 versus Tuesday’s rate of N1,607.54/€1.

Naira in the unofficial market

It was a similar story for the naira in the unofficial market as it once again appreciated against the dollar.

Checks by Legit.ng show that traders sold the dollar at N1,510 and bought at N1,490 from customers on Wednesday.

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New dollar exchange rate as naira gains across all forex markets

A BDC trader who gave his name as Abdullahi Sani said:

"Naira is not yet N1,400, we buy at N1,490 and sell at N1,510 to N1,550 depending on the amount that the buy wants. This is N70, higher compared with the N1,580/$1.

"Naira is more likely to improve in the coming days as I have a lot customers rushing to sell their dollars they have been keeping hoping for it rise again."

UK firms predict exciting exchange rate

Earlier, Legit.ng reported that two UK-based financial institutions have predicted a new exchange rate for the naira against the dollar

Goldman Sachs and Standard Chartered believe the naira will rebound and close stronger in 2024.

Their predictions are based on the current reforms by the Cardoso-led CBN, which has helped the naira achieve a N1572.86/$ rate on Monday from above N1,600.

Source: Legit.ng