“No More N1k/$”: Naira Recovers Slightly Against Dollar After Making History at Black Market

“No More N1k/$”: Naira Recovers Slightly Against Dollar After Making History at Black Market

  • The Nigerian Naira recorded a poor performance against the US dollar in the foreign exchange market
  • At the unofficial market, the Nigerian currency depreciated, while in the official market, the Naira appreciated
  • The Central Bank of Nigeria's new management team have a tough job ahead to create stability in the market

The Nigerian currency, the Naira, closed last week's trading with mixed fortunes in the foreign exchange (FX) market.

While it depreciated against the US Dollar in the Investors and Exporters (I&E), the official market, and Peer-to-Peer (P2P) window, Naira recovered its lost value in the black market.

Naira to dollar exchange rate
Naira continues to suffer from demand pressure Photo credit: CBN
Source: Getty Images

Legit.ng had reported that on Thursday, September 21, 2023, the naira hit a historic low of N1,000 against the US dollar in the black market.

However, there was an improvement the following day, Friday, September 22, 2023, as the Central Bank of Nigeria announced the resumption of Olayemi Cardoso as the next head of the apex bank in an acting capacity, pending his confirmation by the Nigerian Senate.

Read also

Currency outside banks rises to N2.2 trillion in Nigeria as Cardoso plans to end old CBN policies

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Naira recover against the dollar

Checks by Legit.ng show that the Nigerian currency gained N10 against the dollar in the black market, finishing at N990/$1 on Friday, in contrast to Thursday's exchange rate of N1,000/$1.

In the P2P segments, the naira fell against the dollar by N1, quoting at N993/$1 compared to the preceding session's value of N992/$1.

The continued forex scarcity has also increased pressure on the naira in the official market.

According to data from FMDQ securities at the I&E window, the naira lost N9.76 or 1.32 percent against the dollar, closing at N747.76/$1, as opposed to the previous day's rate of N738.00/$1."

No plans to make $1 equal N1.25, CBN says, warns commercial banks about spending FX gains recklessly

Read also

“N1K/$”: Naira new exchange rate to dollar, euro, pound as Senate confirms Yemi Cardoso as CBN gov

Meanwhile, in another report, Legit. ng reported that the Central Bank of Nigeria (CBN) has denied viral social media reports, saying it plans to introduce a new foreign exchange policy to make the naira equal to the US dollar.

CBN made the denial on its Twitter page as it reacted to the report on Wednesday, September 13, 2023.

However, on Monday, September 11, 2023, it instructed commercial banks not to use the foreign exchange revaluation gains from the 60% naira devaluation to pay dividends or other operational costs.

Source: Legit.ng

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