New Exchange Rate As Naira Appreciates by 1.6% Against US Dollar
- The value of the naira appreciated against other foreign currencies in both the official and unofficial forex markets
- New data shows that Nigerian currency gained 1.6% in the official market and N10 in the black market
- The CBN's new forex policy has been instrumental in improving the naira's performance in the foreign exchange market
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 Naira has appreciated once again against the United States dollar and other currencies in the foreign exchange market.
Data from FMDQ Securities showed that the naira closed at N1,485.95/$1 at the end of trading on Thursday, January 30.
This represents an improvement from N1,510.72/$1, which it exchanged for a day earlier.
Source: Getty Images
Thursday’s naira performance marks consecutive days of appreciation, as positive sentiments around the currency grow following recent moves by the CBN.
Similarly, the naira also strengthened against the pound sterling and the euro in the official market.
CBN data showed that the naira appreciated against the pound sterling on Thursday by N27.81 to wrap the session at N1,871.77/£1 compared to the preceding day’s N1,899.58/£1.
While against the euro, the naira improved its value by N24.46 to trade at N1,568.58/€1, in contrast to the previous session’s N1,593.04/€1.
In the parallel market also known as the black market, currency traders also suffered massive losses as the dollar exchange rate fell to N1,615/$ selling rate and N1,600 buying rate.
Naira against other currencies
The CBN also provide a breakdown of the naira exchange rate in the NFEM window.
- Pounds sterling: N1,871.77
- Euro: N1,568.58
- Swiss franc: N1,662.33
- Yen: N9.72
- CFA: N2.43
- WAUA: N1,994.02
- Riyal: N402.15
- Danish krona: N210.17
- Yuan/renminbi: N208.00
- South African rand: N80.72
Why the naira appreciated?
Recent decisions by the Central Bank of Nigeria have helped the naira improve in the foreign exchange market.
During the week, the CBN launched its FX Code to promote ethical conduct among Authorised Dealers in the Nigerian Foreign Exchange Market.
Speaking at the launch, CBN Governor Yemi Cardoso emphasised that exchange rate stability remains crucial to Nigeria’s macroeconomic health, impacting key indicators such as the balance of payments, external reserves, international trade, inflation, economic growth, and foreign investment.
Cardoso also mentioned that the forensic audit of the $7 billion FX backlog, which he inherited upon assuming office, is nearly complete.
He assured that final settlements of legitimate FX liabilities to investors would be processed accordingly.
BDC operators' recapitalisation deadline
Legit.ng reported that BDC operators have also begun discussions on mergers and acquisitions to meet the recapitalisation deadline set by the CBN.
In an exclusive chat, Aminu Gwadabe, President of he Association of Bureau De Change Operators of Nigeria (ABCON), confirmed the development.
He also expressed appreciation to the Central Bank of Nigeria for waiving the 2025 annual license renewal fee for all existing Bureau De Change operators.
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Source: Legit.ng
