Naira Resumes Gain Against Dollar in Official Market, Crashes in Another Market

• On the official foreign exchange market, the value of the naira has now returned to its prior level of appreciation against the US dollar
• According to Central Bank of Nigeria exchange rate data, the value of the naira increased from N1,538.50 on Monday to N1,525 per dollar on Tuesday
• Since the CBN introduced the Electronic Foreign Exchange Matching System, Monday was the first occasion the naira dropped in the foreign currency market

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Twenty-four hours after depreciating, the naira is now restored to its previous level of appreciation against the US dollar on the official foreign currency market.

The naira appreciated to N1,525 per dollar on Tuesday, according to Central Bank of Nigeria exchange rate data, from N1,538.50 on Monday. Compared to the N1538.50 exchanged the day before, this indicates a gain of N13.5 against the dollar.

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BDC operators react as traders predict N1,400/$ this week

However, in the black market, the naira did not gain value, closing Tuesday at N1665 to the dollar, down from N1630 on Monday.

Recall that Monday marked the first time the naira fell in the foreign exchange market since the CBN implemented the Electronic Foreign Exchange Matching System (EFEMS) to facilitate transparent foreign exchange transactions.

Meanwhile, Legit.ng had reported that Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON), responded to the prospect of the naira reaching N1,400 this week.

Street currency traders are concerned that the dollar may appreciate to N1,400 this week, given its current trend.

Reacting to this, Gwadabe said:

“It is achievable considering the enhanced investor confidence, but I want to believe further appreciation levels may not go beyond N1500/$.”

CBN makes changes to forex trading

Legit.ng reported earlier that a minimum deal size of $100,000 is now required for interbank foreign exchange trading using the Electronic Foreign Exchange Matching System, according to new instructions released by the Central Bank of Nigeria.

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Black market traders predict new naira to dollar exchange rate, suspend dollar purchase

This is an effort to guarantee Nigeria's foreign exchange market's effectiveness, transparency, and compliance.

The guideline was signed by Dr. Omolara Duke, the director of the CBN's financial markets division, on November 25, 2024.

Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

Source: Legit.ng