Naira Opens New Week Strongly as CBN Updates Dollar, Pound, Euro Exchange Rates

• Naira will be kicking off the new week on a positive note after appreciating in the last trading session
• Data shows that the naira appreciated against the US Dollar, with the official exchange rate and also the unofficial market
• The CBN is expected to intervene in the foreign exchange market this week to sustain naira appreciation

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, is opening the new week positively after gaining ground against the US Dollar on Friday, August 23, 2024.

Data from FMDQ securities showed that the Nigerian Autonomous Foreign Exchange Market (NAFEM) naira ended last week at N1,570.14/$1 exchange rate.

Friday's exchange rate represents a 1.01% or N15.97 appreciation for the naira compared to the previous day's exchange rate of N1,586.11/$1.

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Traders quote new rates as naira strengthens against British pound, euro

The naira's strong performance occurred despite a slight decrease in forex turnover to $120.81 million, lower than the $120.20 million recorded on Thursday.

The Central Bank of Nigeria (CBN) has also updated the British Pound and Euro exchange rates.

According to CBN data, both currency exchange rates remained unchanged, with the Pound closing at N2,087.11/£1 and the Euro at N1,770.74/€1.

Naira to the dollar at the black market

The naira also improved against the dollar in the unofficial foreign exchange market.

Traders told Legit.ng that the naira, on Monday, August 26, 2024, exchanged at N1,605/$1 compared to the previous rate of N1,615/$1.

Kelvin Umeni, an economist, told Legit.ng that he expects the Central Bank of Nigeria to intervene in the market.

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New exchange rate as naira depreciates again against US dollar

"The market expected CBN intervention in the foreign exchange market last week, but it did not happen, so it is possible this week.

"It has now been over two weeks since the CBN sold over $800 million through the retail Dutch auction, so to sustain the results from the previous sale, intervention is expected."

Report predicts how Nigeria will get dollars

Legit.ng earlier reported that a recent quarterly statistical bulletin from the Central Bank of Nigeria (CBN) highlighted that foreign exchange (FX) consumers consumed more dollars in the three months ending in December 2023 than in the previous quarter.

It said the inflows would likely come from World Bank budget finance, NNPC-related flows, and Eurobond issuance.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng