Naira Appreciates Massively to N737 /$ at The Black Market Amid Slow Dollar Demand

• Nigeria’s currency, the naira recovered by about 1.2 per cent on Wednesday, April 12, 2023
• The naira gained about N9 against the US dollar to trade at N737 per dollar
• It also appreciated at the official Investors and Exporters window by 0.08 per cent

On Wednesday, April 12, 2023, the naira appreciated N737 per dollar at the unofficial parallel market popularly called the black market.

The amount represents a N9 or 1.2% gain compared to the N746 it exchanged three weeks ago.

The Nigerian currency had been stable against the US greenback in the past weeks, hovering between N745 per dollar and N746 per dollar before its massive jump.

Bureau de Change operators report that they purchased the US dollar at N730 per dollar to resell at N737, gaining N7, TheCable said.

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The currency traders attributed the naira appreciation to low dollar demand.

The naira also gained about 0.08% at the Investors and Exporters (I&E) window to close at N65 per dollar on Tuesday, April 11, 2023, data from FMDQ reveals.

The data also revealed that forex estimated at &80.90 were exchanged among currency dealers.

Nigeria’s apex bank, the Central Bank of Nigeria (CBN), continued intervening in the official foreign exchange market from the nation’s external reserves to maintain the naira’s stability.

However, the Central Bank of Nigeria has adjusted the exchange rate on its website to N460.93 to a dollar, with analysts saying the bank may have secretly devalued the currency to combat inflation and interest rate hike.

World Bank report says naira lost 10 per cent of its value in 2022, lists worst currencies in Africa

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Legit.ng reported that according to the World Bank, the Nigerian naira lost an estimated 10.2% of its value in 2022. The development resulted from Nigeria’s inflation rate, which hit a 17-year high at 21.34%, and rising food prices. The World Bank disclosed as it released its Africa’s Pulse report for April 2023.

The Washington-based bank said other African currencies have also lost significant values in the past year.

It said the Sudanese currency lost 23.6%, Malawi 20.7%, The Gambia 14.6%, and Nigeria, 10.2%.

Source: Legit.ng