CBN Adjusts New Exchange Rates As Naira Appreciates by 0.6% Against US Dollar in Official Market
- The Nigerian currency has recovered its lost value against the US dollar in the official foreign exchange markets
- The naira kicked off the new week with a strong performance after consecutive poor exchange rates
- However, the new exchange rate remains above N1,600, which is not in line with the Central Bank of Nigeria's expectations
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 Nigerian currency, the naira, has started the new week positively against the US dollar at the official foreign exchange market.
According to data from FMDQ Securities, the naira closed at N1,607.15/$ at the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, August 6, 2024.
Source: Getty Images
Monday's exchange rate represents a 0.61% or N9.93 appreciation compared to the N1,617.08/$1 recorded on Friday, August.
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The strong performance of the naira comes despite low forex supply in the market.
The data showed a forex turnover of $77.09 million was recorded during the trading session, 41.4% or $54.46 million lower than the $131.55 million recorded in the preceding trading day.
Naira to pound, euro exchange rates
It was a different story for the naira against the British pound and the euro as it depreciated further.
The CBN data showed that the Nigerian currency value declined against the Pound Sterling yesterday by N24.84 to sell for N2,076.34/£1, in contrast to last Friday's closing value of N2,051.50/£1.
The naira also weakened against the euro by N34.26 to quote at N1,764.15/€1 compared with the preceding session's N1,729.89/€1.
The naira was unchanged against the US dollar in the parallel market, also known as the black market.
Traders sold the dollar at N1,605/$1 exchange rate to Nigerians looking to buy forex.
CBN shows $9bn drop in forex demand
Legit.ng earlier reported that the demand for foreign exchange by individuals and companies engaged in importation and other forex-related activities decreased by 42% year-on-year.
The total sectoral utilisation of foreign exchange indicated that 19 sectors and services received $21.12 billion in forex allocations in 2023.
This represented a 41.9% decline, or $8.87 billion, compared to the $29.98 billion allocated in 2022.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
