Naira Records Massive Gain Against US Dollar Exchange Rate Falls Below N1,600
- The Nigerian currency has appreciated against the US dollar in the official foreign exchange markets
- This good performance of the naira came as the Central Bank of Nigeria increased the dollar supply to the market
- The naira has been under demand pressure for dollars for days and has failed to appreciate for five straight days.
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's value in the official foreign exchange market improved against the US dollar for the second time in September on Friday.
According to data from FMDQ Securities, the naira closed at N1,593.32/$ at the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, September 6, 2024.
Source: Getty Images
Friday's exchange rate represents a 46.09 appreciation compared to the N1,639.41/$1 closing rate on Thursday, September 5.
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
The appreciation is the first for the naira in three days at the foreign exchange market.
The strong performance of the naira comes as the dollar supplied by willing sellers and willing buyers surged by 244.4% to $245.17 million on Friday compared to $71.18 million recorded on Monday at the NAFEM.
On a day-on-day basis, the dollar supply rose by 31.96% on Friday from $185.79 million recorded on Thursday.
Naira to dollar rate at the black market
However, in the parallel market, also known as the black market, the naira lost N25 in five trading days to close at N1,660 on Friday, while N1,635 closed on Monday.
On a daily trading basis, the local currency steadied at N1,660 on the black market.
Abdulahhi explained to Legit.ng
"The demand pressure on the dollar remained; I sold dollars for as low as N1,660 to some of my customers.
"We also received notification from the CBN that dollars are now available for sale at a lower exchange rate but it is not yet available."
Nigeria's foreign reserves rise
Legit.ng earlier reported that Nigeria's foreign exchange (forex) reserves increased by $195.01 million to $32.64 billion, indicating that the market is expected to have more liquidity.
Naira's value in the official foreign exchange market improved against the US dollar for the first time in September.
The reserves increased by $89.76 million the week before. Before this, it had increased by $10.76 million and $132.68 million.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
