Naira Bounces Back, Appreciates Against Dollar, Euro, Pound Sterling in Official and Black Market

June 05, 2024

The value of the Nigerian currency appreciated against the United States dollar across all FX markets
The naira is now getting closer to an exchange rate of N1,000 per dollar in both the official and unofficial markets
The sustained gains in recent times have been attributed to the policy thrust of the Central Bank of Nigeria (CBN)

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 recorded a strong performance in the official and unofficial exchange markets against all foreign currencies on Wednesday, April 17, 2024.

Data from FMDQ securities shows that in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed the day's trading at N1,072.74/$1.

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Wednesday's closing rate represents a 6.6% or N75.40 appreciation compared to the previous day's N1,148.14/$.

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Naira also improved its value against the pound sterling and the euro in the official market.

CBN data shows that the naira ended the day with an appreciation of N298.92 to sell at N1,147.53/£1 compared with Tuesday's closing value of N1,446.45/£1.

While against the Euro, it gained N14.62 to quote at N1,220.17/€1 versus N1,234.79/€1.

Naira to the dollar at unofficial markets

It was the same scenario for the naira in the unofficial market as it continued its strong performance.

Traders who spoke to Legit.ng said the naira appreciated N50 to trade at N1,050/$1 compared with the preceding day's rate of N1,100/$1.

CBN explains the depletion of FX reserves

Meanwhile, the Central Bank of Nigeria has addressed concerns over the declining foreign reserves, maintaining that the decline is not because the apex bank is defending the naira.

Yemi Cardoso, the Governor of the CBN, speaking at the ongoing International Monetary Fund-World Bank Spring Meetings in the US, said the depleting external reserve is due to debt repayments and other obligations.

His words:

“The shift you see in our reserves has little or nothing to do with defending any naira, and that is certainly not our objective.”

UK firms predict exchange rate in 2024

Earlier, Legit.ng reported that two UK-based financial institutions predicted a new exchange rate for the naira against the dollar.