New Exchange Rates as Naira Records First Gain in November Against US Dollar

• The Nigerian currency has improved in value against the United States dollar in the official and black foreign exchange markets
• The latest exchange rate data showed that the naira recorded a strong performance despite a drop in the forex supply
• There is optimism among experts that the naira will recover soon to a more stable exchange rate

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, kicked off November positively as it recovered some of its lost value against the United States dollar in both the official and black foreign exchange markets.

According to data from FMDQ securities, the naira in the Nigerian Autonomous Foreign Exchange Market (NAFEX), the official market, was closed at the N1,666.72/$1 exchange rate on Friday, November 1, 2024.

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This is an appreciation of 0.5% or N8.77 against the dollar when the exchange rate is compared to Thursday's closing rate of N1,675.49/$1.

The naira's strong performance comes despite the value of forex transactions falling by 43.5%, or $72.41 million, to $94.20 million from $166.61 million on Thursday.

It was also good news for naira in the parallel or black market on Friday.

Abudulahhi, a BDC trader, revealed that the naira improved in the black market due to low demand.

He told Legit.ng:

"Naira against dollar gained by N20. We now sell at N1,730/$1 compared with the N1,750/$1 it was traded previously."

Naira against pound, euro

It was, however, a different story for the naira against the British pound sterling and the euro.

The latest CBN data showed that the naira lost to the pound sterling on Friday by N10.10 to settle at N2,157.25/£1, in contrast to the preceding session’s N2,147.15/£1.

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While against the euro, it lost N23.43 to settle at N1,814.79/€1 versus the previous day’s N1,791.36/€1.

Lagos Chamber predicts new exchange rate

Earlier, Legit.ng reported that the Lagos Chamber of Commerce and Industry (LCCI) predicted that the value of the Nigerian currency would improve against the US dollar.

Gabriel Idahosa, the President of LCCI, gave the prediction when he addressed journalists about the state of the economy in Lagos.

The chamber's president believes this rate is achievable if the CBN reviews the current free-floating exchange rate.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng