Naira Gains 16.09 Per Cent Amid Slowed Demands, Increased Dollar Supply

Naira Gains 16.09 Per Cent Amid Slowed Demands, Increased Dollar Supply

  • The Naira has regained about 16.5 per cent of its value against the dollar in the last three days
  • The local currency gained about N123.22 against the dollar after losing 36.52 per cent as of Friday last week
  • It was exchanged for N766.66 to a dollar, compared to N890 it traded at on Friday, November 4, 2022

The Naira gained about N123.22 against the dollar representing 16.09 per cent in the last three days, after losing 36.52 per cent of its value in almost 11 months at the black market.

The rebounding of the Naira was due to moderation in demand amid an increased supply of dollars at the parallel market.

Naira, CBN, Black Market
Naira regains strength at the black market Credit: Luis Alvarez
Source: Getty Images

Naira shows strength

On Wednesday, November 9, 2022, the dollar was quoted at an average rate of N766.66 to a dollar, compared to the N890 per dollar traded on Friday, November 4, 2022, according to a BusinessDay report.

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In two days, the Nigerian currency appreciated by 3 per cent from N796.66 across the southern and northern parts of Nigeria.

The local currency has been plummeting in the last seven years to peak at N890 per dollar on Friday, from N565 per dollar at the beginning of 2022.

The fall represents a 36.52 per cent loss against the dollar.

Naira gains nationwide

On the streets of Lagos, the dollar exchanged between N760 and N780 at the end of the trading day from N790 and N810 it traded on Tuesday.

In the Lagos Street market, dollars exchanged between N760 and N780 at the end of the trading day from N790 and N810 on Tuesday.

In Kano, the Naira was quoted at N755 per dollar at the end of the trading day compared to the N780 per dollar quoted. In contrast, the dollar was quoted at N765 per dollar on Wednesday against N800 in Abuja, the Federal Capital Territory.

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According to the FMDQ, at the Investor and Exporters'(I&e) Window, the local currency appreciated by 0.10 per cent as the dollar was quoted at N445.67 on Wednesday, November 9, 2022, against the greenback and compared to N445.75 on Tuesday.

Currency dealers bid for dollars

Currency operators and other dealers who participated in the forex auction on Wednesday bided at a low of N432.00 and a high of N447.09 to the dollar.

The foreign exchange market turnover spiked by 27.95 per cent to $93.01 million on Wednesday from $72.69 million recorded on Tuesday.

At the money market, the Overnight rate went up by 0.08 per cent to close at 8.83 per cent against the dollar as against 8.75 per cent it closed at on Tuesday.

Naira hoarders release crisp N500 notes printed in 2007 as CBN plans redesign

Legit.ng reported that ahead of the planned redesign of N200, N500, and N1,000 notes by the Central Bank of Nigeria, naira hoarders have been put on edge and are releasing bank notes in their custody.

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On Tuesday, November 1, 2022, Nigerians spotted a crisp and clean N500 note printed in 2007.

According to a Twitter user with the handle barakah_bello, the note was hoarded by Nigerians and is making their ways into circulation as CBN unveils plans to give the currencies a new look.

Source: Legit.ng

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