Again, Naira Appreciates against US Dollar after CBN’s Decision

• More good news for the naira as it appreciated against the United States dollar in the foreign exchange markets
• New data shows that the naira improved by N35.32 in the official market, while in the black market, it increased by N5
• The Central Bank of Nigeria's recent decision to intervene in the foreign exchange market has helped the naira

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 again against the US Dollar in the official foreign exchange market following the Central Bank of Nigeria's (CBN)recent injection of forex.

According to data from FMDQ securities, where naira is officially traded, naira closed against the US dollar at N1,540.78/$1 on Friday, September 27, 2024.

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Naira sinks to N1,700 per dollar at black market, hits 7-month low amid continued depreciation

The exchange rate on Friday at the Nigerian Autonomous Foreign Exchange Market (NAFEX) showed a 2.24% or N35.32 improvement compared to the previous day's rate of N1,576.10/$.

The naira's strong performance is attributed to the FX liquidity provided by the Central Bank, with a total of $212.31 million transacted on Friday.

Legit.ng had earlier reported that the CBN sold dollars at a cheaper rate to authorised Bureau de Change (BDC) operators in its bid to stabilise the Naira.

Naira other performance

Meanwhile, there was little to report for the naira against the Pound Sterling and the Euro in the official market.

CBN currency data showed the naira exchange at N2,187.81/£1 and N1,822.82/€1, respectively, the same rates as the previous day.

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Naira appreciates massively after CBN sells ‘cheap dollars’ to BDC operators

However, there was positive news in the parallel market, also known as the black market, as the naira gained N5 against the dollar on Friday, trading at N1,690/$1 compared to the preceding session’s N1,695/$1.

CBN predicts new 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.

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

Source: Legit.ng