Naira Appreciates Massively After CBN Sells 'Cheap Dollars' to BDC Operators
- The Nigerian currency recovered some of its lost value against the US dollar in the official foreign exchange market.
- Latest data showed that the naira recorded a strong performance following the CBN's decision to sell dollars to BDCs
- The apex bank hopes that the naira's recovery will continue across all foreign exchange markets in the coming 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 Nigerian currency has appreciated in the official foreign exchange market against the US dollar in the official market.
According to data from FMDQ Securities, the naira sold at N1,576.10 a dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, September 26, 2024.
Source: Getty Images
This represents a 5.45%, or N90.9, appreciation when compared to the N1,667/$1 exchange rate it traded at the close of trading on Wednesday, September 25, 2024.
Why naira appreciated?
The strong performance of the naira is due to the Central Bank of Nigeria (CBN) injecting FX into the market.
Legit.ng observed that the market recorded $334.05 million worth of transactions on Thursday, significantly improving from the $100.47 million recorded the previous day.
Naira to pound, euro
It was also good news for the naira against the British pound and the euro.
The CBN data showed that Nigerian currency improved its value against the pound sterling in the official market to sell at N2,187.8054/£1 compared with Thursday's rate of N2,223.68/£1.
Also, the naira gained against the euro to quote N1,822.81/€1 versus last Friday’s rate of N1,830.11/€1.
Naira to dollar at black market
The good news continued for the naira against the US dollar in the parallel market, also known as the black market.
Street currency traders told Legit.ng that the naira appreciated by N10 against the dollar on Monday, reaching N1,685/$1 compared to the previous trading day's rate of N1,695/$1.
Abudulahi explained the new rate to Legit.ng.
" The CBN's injection of forex has helped a bit reduced the demand for dollar from US street traders."
CBN sells dollar to BDCs
In a related development, Legit.ng earlier, the Central Bank of Nigeria has again announced another round of dollar sales to licensed Bureau De Change Operators.
The move is part of the apex bank's efforts to halt the depreciation of the naira in the foreign exchange markets.
The CBN has a fixed exchange rate limit for the BDCs when reselling cheap dollars to Nigerians.
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Source: Legit.ng
