Naira Appreciates Massively Against US Dollar to New Exchange Rate

• The value of the Nigerian currency has appreciated massively against the US dollar in the official foreign exchange markets
• The naira recorded a strong performance on the back of expectations that the Dangote refinery will help ease demand for forex
• Nigerians will be hoping that the naira's good performance continues both at the official and unofficial market

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, appreciated in the official foreign exchange market against the United States dollar in the official market.

According to data from FMDQ Securities, the naira closed at N1,558.75/$1 at the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, September 13, 2024.

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This represents a N91 appreciation when compared to the N1,649.76/$1 previous day's exchange rate.

Why naira appreciated?

During the week, the Nigerian government announced that its initial $500 million domestic bond raise program was oversubscribed by $400 million, indicating considerable interest in the country’s economy.

This development means the Central Bank of Nigeria now has more capacity to intervene and increase forex supply.

An earlier report showed that Nigeria's foreign exchange (forex) reserves recorded a $490 million increase.

Naira to pound, euro

Data from the CBN showed that the naira against the pound Sterling closed at N2,067.96/£1 on Friday at the same rate as the previous day.

However, the naira weakened against the euro, dropping by N67.98 to settle at N1,816.83/€1, compared to Thursday’s closing price of N1,748.85/€1.

Read also

Naira recovers near N1,500/$ as CBN officially adjusts exchange rates, traders happy

Naira to dollar black market

Traders who spoke to Legit.ng in the black market said the dollar exchange rate was steady on Friday.

A BDC trader Abudulahhi said:

"On Friday, we sold the dollar at N1,660, the same rate as Thursday. However, we offer a lower rate to customers purchasing large amounts."

CBN predicts new naira to dollar exchange rate

Earlier, Legit.ng reported that the CBN asked Nigerians to expect the value of the Nigerian currency to improve in the coming months.

The apex bank said increasing domestic crude oil production and exports would enhance the naira's value.

The CBN recently conducted another round of forex sales and reiterated its determination to tackle depreciation of the naira.

Source: Legit.ng