New Naira to Dollar Exchange Rate at Official, Black Markets

• The Nigerian currency gained against the United States Dollar in the official, black foreign exchange market.
• The exchange rate data showed that the naira recorded a strong performance following the improvement of forex supply
• The Central Bank of Nigeria will be hoping that its new improvement will continue across all foreign exchange markets

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, recovered some of its lost value against the United States dollar in both the official and black foreign exchange markets on Thursday, October 3, 2024.

According to data from FMDQ securities, the naira in the Nigerian Autonomous Foreign Exchange Market (NAFEX), which is the official market closed at N1,659.26/$1 exchange rate on Thursday.

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This is an appreciation of 0.6% or N9.89 against the dollar compared to Wednesday’s closing rate of N1,669.15/$1.

The platform also revealed that during trading on Thursday, the value of FX transactions significantly rose by 155.3% or $273.94 million to $450.39 million from the $176.45 million recorded on Wednesday.

This improvement in forex supply helped the naira strengthen the naira at the close of business on Thursday.

Naira performance in the forex markets

It was also good news for the naira in the parallel or black market on Thursday as it gained N20 to trade at N1,675/$1, compared with the N1,695/$1 it was exchanged a day earlier.

However, data from the CBN showed that the naira weakened against the British pound and the euro.

The naira fell against the pound sterling at the official market by N56.00 to close the session at N2,199.65/£1, compared to the preceding day’s N2,143.65/£1.

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Against the euro weakened by N41.18 to close at N1,830.89/€1, compared to N1,789.71/€1 the previous day.

Two platforms identified as threats to the naira

Earlier, Legit.ng reported that Nigerians identified the emergence of two cryptocurrency platforms as the reason for the recent fall of the naira.

The earlier decline of the naira was attributed to alleged market manipulation by Binance.

Nigerians have blamed the latest depreciation on new crypto exchange platforms, namely BYBIT and BITGET.

Source: Legit.ng