New Exchange Rate As Naira Gains Over N64 in Hours Against US Dollar, First Appreciation in Days

• The Nigerian currency, the naira has recovered some of its losses recorded in foreign exchange markets
• The improvement follows an increase in dollar supply into the official market and also positive sentiments
• The CBN will be hoping that the improvement continues in the coming days ahead and also in the unofficial markets

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 has recorded a strong performance in the official market also known as the Nigerian Autonomous Foreign Exchange Market (NAFEM)

Data from FMDQ securities showed that Nigerian currency value closed trading at N1,459.09/$1 in the official market on Wednesday, May 16, 2024.

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The new rate represents an appreciation of 4.0% or N61.31 for the naira against the US Dollar compared with Tuesday's rate of N1,520.40/$1.

Naira bounces back

Legit.ng checks also showed that the naira's value improved against the pound sterling and the euro in the official market on Monday, May 6.

It was however a different story for the naira against the pound sterling and the euro in the official market.

According to data obtained from the CBN website, naira lost N122.87 against the Pound Sterling to sell for N1,890.47/£1 versus N1,767.62/£1.

While against the euro the naira depreciated by N105.39 to recorded an exchange rate of N1,625.55/€1 on Wednesday compared to previous rate of N1,520.16/€1

Naira to dollar unofficial market

In the unofficial market also known as the black market the Nigerian currency continue its depreciation to the dollar on Wednesday.

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BDC trader, Abudulahhi who spoke to Legit.ng said the naira fell by N10 to finish at N1,540/$1 compared with Tuesday’s value of N1,530/$1.

He explained:

"The new exchange rate is due to the scarcity of dollars in the BDC market. We are still waiting for the CBN to conduct another round of sales to boost liquidity and ease pressure."

FG addresses Naira to dollar exchange rate

Legit.ng earlier reported that Ben Akabueze, the director-general of the federation's budget office, said the Naira would strengthen in value in the foreign exchange market in 2024.

Akabueze said this would be possible as the country expects an increase in dollar supply.

He noted that the Tinubu-led government expects the reforms to start yielding results in 2024, which is why it maintains a positive stance on the exchange rate.

Source: Legit.ng