Again, Naira Appreciates Against US Dollar, Trades at New Exchange Rate
- The value of the Nigerian currency recorded improved performance on the last trading day in the foreign exchange market
- The naira appreciated by N10 in the unofficial forex market and by over N17 in the approved CBN market
- There are high hopes that the naira will appreciate in the coming months ahead with NESG predicting N1,300
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.
Nigerian currency appreciated again in value against the US dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM)
Data from FMDQ securities showed that it closed on Friday, January 24 at N1,531.20, marking a 1.12% or N17.39 gain when compared to the previous day's rate of N1,548.59/$1.
Source: Getty Images
Friday's naira's performance makes it consecutive days of appreciation following the good performance recorded on Thursday.
Similarly, the naira also strengthened against the pound sterling, as it gained N8.97 to close at N1,903.24/£1 compared to N1,912.21/£1 the previous day.
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Naira makes strong gains in official market as CBN predicts high dollar inflow into Nigeria
In the same vein, against the euro, the naira appreciated by N8.72, settling at N1,605.17/€1 from N1,613.89/€1 previously.
In the parallel market, the naira traded at N1,660/$1, showcasing a slight improvement from the N1,665/$1 recorded on the previous trading day.
Why the naira appreciated
Market observers attributed the gain to expectations of sustained policy interventions by the Central Bank of Nigeria (CBN), aimed at bolstering the local currency's value in the year's first quarter.
The CBN announced that it planned to launch the FX Code to enhance transparency in the market.
A statement from CBN reads:
"The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline for the banking industry to promote the ethical conduct of Authorised Dealers in the Nigerian Foreign Exchange Market.
"The Bank will formally launch the Code at the CBN Head Office Auditorium in Abuja on Tuesday, January 28, 2025."
Economist predicts N1,300 exchange rate
The Nigerian Economic Summit Group (NESG) in its 2025 economic outlook, released on Thursday, January 23, 2025, forecasted a massive naira appreciation to an average exchange rate of N1,300 to the US dollar in 2025.
The optimistic projection the NESG said was based on higher foreign exchange earnings, driven by increased crude oil sales, revitalised manufacturing output from the oil refining sub-sector, and improved agricultural productivity.
The group further noted that Nigeria, a largely crude oil-based economy, is expected to benefit from stable global demand and enhanced local production, boosting export revenues.
Naira against other currencies
- Pounds Sterling: N1,903.24
- Euro: N1,605.17
- Swiss Franc: N1,691.22
- Yen: N9.81
- CFA: N2.46
- Riyal: N408.74
- Danish Krona: N215.10
- Yuan/Renminbi: N211.56
CBN asks Nigerians to take advantage of weak naira
Legit.ng earlier reported that Olayemi Cardoso, the governor of the CBN, encouraged businesses to look at export opportunities.
According to Cardoso companies need to investigate export prospects by taking advantage of the weak naira.
It added that a weakened naira makes Nigerian goods more accessible and appealing internationally.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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