Naira Appreciates Against US Dollar in Official Market
- The value of the Nigerian currency has appreciated against the dollar in all foreign exchange markets on Monday
- The Central Bank of Nigeria's new data shows that the naira recorded a slight depreciation in the NAFEM window
- There is still pressure on the Nigerian currency in both the official and unofficial 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, has improved against the United States dollar in the official market.
Data from the CBN showed that the Nigerian Foreign Exchange Market (NFEM) ended trading on Monday, April 4, at N1,605.25 a dollar.
Source: Getty Images
Tuesday's exchange rate is a 0.04% depreciation for the naira compared to last Friday's exchange rate of N1,611.08.
However, the Nigerian currency remained stable against the British pound sterling at the spot market during the sessionat N2,090.58/£1 compared.
While against the euro, the naira appreciated to N1770.13/€1 from N1,815.82/€1 it closed on Friday last week.
Naira falls against at black market
In the parallel market, also known as the black market, it was a different story for the naira against the dollar, euro, pounds.
Traders who spoke to Legit.ng confirmed that the dollar depreciated against the Nigerian currency.
"We sold the dollar at N1,615/$1 on Monday, compared with the N1,610/$1 it was exchanged for last Friday. Meanwhile, the British pound fell to an exchange rate of 2065, and the euro was at N1,780."
Source: Getty Images
Snapshot of naira rates in the official market
Based on CBN published rates, here is a breakdown of naira's performance against other foreign currencies in the NAFEM market.
- CFA– N2.73
- Danish krona – N242.99
- Yen – N11.15
- Yuan/renminbi – N217.61
- Danish krona – N237.16
- Euro – N1770.14
- Yen – N10.97
- Riyal – N424.04
- South African rand – N82.01
- Swiss franc – N1897.77
Forex inflow into Nigeria
The Central Bank of Nigeria (CBN) revealed that remittance flows into the Nigerian economy rose by nine percent to $20.98 billion, the highest level in five years under the current leadership of Olayemi Cardoso.
The apex bank said the last time remittances exceeded that level was in 2019, when they hit $23.80 billion, Punch reports.
The increase in remittances is good news for the CBN in its efforts to ensure adequate foreign exchange availability in the market.
Reno Omokri reacts as naira strengthens against US dollar
Earlier, Legit.ng reported that the Former presidential aide, Reno Omokri, said some Nigerians are unconcerned about the rise of the naira against the dollar because they bet against the Nigerian currency.
Omokri said they had speculated against the naira but have now lost due to the appreciation of the naira.
He stated this in a post made via his X handle (formerly known as Twitter) @renoomokri on Sunday, December 8.
The social critic said the speculators are praying that the appreciation of the naira will not last.
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Source: Legit.ng
