New Exchange Rate As Naira Bounces Back Against US Dollar at Official Forex Market

• The Nigerian currency exchange rate has appreciated against the dollar in the foreign exchange market
• In the official market, the naira increased in value by 0.7%, while in the unofficial market, it weakened by N5
• The naira's strong performance comes on the back of improvement in the foreign reserves to over $37bn

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 will start the new week strong in the official market, also known as the Nigerian Autonomous Foreign Exchange Market (NAFEM).

FMDQ securities report that Nigerian currency closed against the US dollar in the NAFEM window at N1,509.67/$1 on Friday, July 5, 2024.

The new rate is an improvement by 0.7% or N10.57 on the US dollar when compared with last Thursday's rate of N1,520.24/$1.

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The total transaction executed on Friday shrank by 32.6% or $56.63 million to $116.88 million from the $173.51 million quoted in the preceding trading session.

Naira fell against the pound, euro

However, a check by Legit.ng shows that the value of the naira has depreciated against the pound sterling and the euro in the official market.

CBN data showed that the naira suffered a loss of N17.90 against the British currency, selling for N1,935.24/£1 compared to the previous day’s N1,917.34/£1.

Against the euro, it followed the same trend, falling by N14.41 to quote at N1,638.75/€1.

Naira to dollar unofficial market

It was, however, a different story for the naira in the black market against the US dollar.

Traders told Legit.ng that the naira weakened against the US dollar.

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Naira crashes at CBN official market, traders sell US dollar at new exchange rate

Abdulahhi, a trader, told Legit.ng:

"On Friday, we sold the naira at N1,525/$1, marking a N5 depreciation compared to the previous day's exchange rate of N1,520/$1.

"I expect the naira to perform better in the new week."

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.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng