Naira Defies Predictions, Performs Better in Black Market, Appreciates in Official Window

Naira Defies Predictions, Performs Better in Black Market, Appreciates in Official Window

  • The Nigerian currency, the naira, again rebounded against the US dollar in the official and black markets
  • The naira traded better in the parallel market, where it rallied to N1,240 per dollar as against the N1,250 recorded the previous day
  • The naira also recovered in the official market by N1,262 per dollar as against the N1,278 recorded on Tuesday, April 2, 2024’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian currency broke all predictions of doom by various pundits and organisations to continue its resurgence against major currencies.

The naira has been consistently gaining against the US dollar since mid-March 2024, going from N1,600 per dollar in the official window to below N1,300 and from N1,917 in the black market to N1,240 per dollar.

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Naira gains in all markets
Naira rallies in official and black markets, trading at the lowest. Credit: Bloomberg
Source: Getty Images

The naira rebounds in all markets

On Wednesday, April 3, the naira appreciated N1,240 in the parallel market segment of the forex market.

The naira performed better in the parallel market than the official window, rebounding to N1,262.85 per dollar as against the N1,278 recorded on Tuesday, April 2, 2024.

The naira’s black market performance represents a 0.80% rise from the N1,250 per dollar recorded the previous day.

Black market traders quoted the buying rate of the dollar as N1,2020 and the selling rate as N1,240 per dollar.

Data from NAFEM shows that the naira appreciated by 1.25% against the US dollar compared to the previous day’s performance.

Official window exceeds the black market

Reports say that traders quoted the naira at a high of N1,296 per dollar and a low of N1,210.

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The Forex market recorded a turnover of $166.8 million.

The current rate of the naira performance shows that the official market exceeded the black market rate by N22.85. earlier reported that the American top bank, Goldman Sachs, predicted that the naira would appreciate N1,200 per dollar against the dollar in 2024.

The bank said Nigeria is turning the corner following recent currency volatility.

Also, the Economist Intelligence Unit (EIU) said the naira will rally to about N2,000 per dollar in 2024.

ABCON explains the role of BDCs in boosting local currency previously reported that the Nigerian currency has been experiencing a massive resurgence against the US dollar and other major currencies following a series of actions by the Central Bank of Nigeria (CBN) to provide liquidity in the forex market.

The Association of Bureaux de Change Operators of Nigeria (ABCON) has attributed the naira’s excellent performance to the recall of Bureau de Change (BDC) operators to the forex market.

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Naira makes biggest gain in months in official window, trades stronger in black market

According to a statement by ABCON’s president, Aminu Gwadabe, the recall of the BDCs has boosted dollar liquidity at the forex market's retail market end alongside the CBN's monetary policy tightening stance.


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