Dollar Exchange Rate Drops by Over N60 as Naira Bounces Back After CBN Intervention

• The naira has recorded a strong performance against the US dollar to open the new week on a high in the foreign exchange markets
• The new exchange rate is thanks to the improvement in dollar supply into the official market by the CBN
• The CBN is determined to find solutions to the continued depreciation of the naira against other currencies

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 improved against the United States dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEX), the official market.

According to data from the FMDQ securities naira exchange at N1,600.78/$1 compared with the N1,660.49/$1, it closed in the previous session.

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The improvement in the value of the naira was helped by forex liquidity increasing by 6.2% or $20.54 million to $350.72 million from the $330.18 million achieved a day earlier,

Also, CBN data showed that the British pound sterling closed flat against the domestic currency to remain at N2,153.90/£1 and remained unchanged against the euro at N1,791.06/€1.

The naira, however, weakened against the dollar by N10 in the parallel market to sell for N1,715/$1 versus compared to the previous exchange rate of N1,705/$1.

Abdulhaii, a BDC trader, said:

"We sold the dollar at over N1,700/$1 due to high demand. During this period, many Nigerians will be traveling, creating real demand."

Snapshot of exchange rates on Thursday are:

• CFA: N2.66
• Yuan/Renminbi: N232.35
• Danish Krona: N241.33
• Euro: N1,800.788
• Yen: N11.07
• Riyal: N440.16
• South African Rand: N93.78
• Swiss Franc: N1,916.70
• Pounds Sterling: N2,153.90

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FG addresses the naira the dollar exchange rate

Legit.ng earlier reported that Ben Akabueze, the director-general of the federation's budget office, said the naira would strengthen in value in the foreign exchange market in 2024.

Akabueze said this would be possible as the country expects an increase in dollar supply.

He noted that the Tinubu-led government expects the reforms to start yielding results in 2024, which is why it maintains a positive stance on the exchange rate.

Source: Legit.ng