Naira Bounces Back at The Official Market to Put Tinubu’s $1 Trillion Economic Plans Back on Track

Naira Bounces Back at The Official Market to Put Tinubu’s $1 Trillion Economic Plans Back on Track

  • The Nigerian currency, the naira, recovered at the official market on Wednesday, November 29, 2023
  • The naira closed at N831.47 to a dollar in NAFEM, representing a 6.06% recovery
  • However, the naira plunged at the parallel market, where it traded at N1,160 to a dollar on Wednesday, November 29, 202

Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.

The naira made a comeback on Wednesday, November 29, 2023, after two days of depreciation.

The Nigerian currency appreciated against the dollar, closing at N831.47, according to the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Naira, NAFEM
Naira bounces back at the official market Credit: Bloomberg/Contributor
Source: Getty Images

Naira gains 6.06% at the official market

The move aligns with President Bola Tinubu’s $1 trillion economic plan for Nigeria and the Central Bank of Nigeria’s actions to clear Forex backlogs to boost the naira.

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Naira’s loss at the official and parallel markets upsets Tinubu, CBN’s $1 trillion GDP plan

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The naira appreciated by 6.06% to close at N831.47 to a dollar at the close of business on Wednesday.

The development represents an N50.41 gain by the local currency against the dollar compared to the N841.14% it closed on Tuesday, November 28, 2023.

Traders bid an intraday high of N1,159 to the dollar and an intraday low of N700 to the dollar, showing a disparity of N459.

Forex turnover at NAFEM improves

Data from NAFEM shows that Forex turnover at the close of trading was about $140.35 million, representing an 18.88% growth compared to the day before.

The naira depreciated by 0.26% at N1,160 to the dollar in the black, while the peer-to-peer market quoted N1,159.47 to a dollar.

Recall that the CBN said it had made a tranche payment to about 31 banks to boost Forex liquidity.

Read also

No more N956/$: Naira recovers by 16%, set for more gains on Cardoso’s $1 trillion GDP target

The bank disclosed that it had established Forex frameworks to address FX challenges, per CBN boss Olayemi Cardoso.

Cardoso disclosed this on Friday at the bankers’ dinner in Lagos.

No more N1k/$ as currency dealers quote new naira rate against the dollar in the official market reported that the naira depreciated 1.15% against the dollar at the official market despite a rise of over 60% in FX liquidity on Wednesday, November 22, 2023.

The naira closed at N840.53 per dollar on Wednesday, November 22, 2023, weaker than the N830.97 quoted on Tuesday at the Autonomous Foreign Exchange Market (NAFEM), data from FMDQ showed.

The foreign exchange market recorded improved dollar liquidity as the daily FX turnover spiked by 61.86% to $198.21 million on Wednesday, November 22, 2023, from $122.46 million recorded the previous day.


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