“Naira Gains More N500/$” Analysts Name Losers as CBN Intervention Drives Naira Below N1,000/dollar

“Naira Gains More N500/$” Analysts Name Losers as CBN Intervention Drives Naira Below N1,000/dollar

  • LeNaira gained N170 to close at N950 per dollar in the black market on Friday, November 3, 2023
  • The naira also gained N23.6 to close at N738.67 per dollar in the Importers' and Exporters’ forex market
  • Analysts said speculators were hit hard by the current realities of the FX market after CBN began clearing backlog

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market

On Friday, November 3, 2023, the naira strengthened against the dollar closing at N950/$ in the black market.

This showed the naira gained N170 from the N1,120/$ it traded on the previous day, Thursday, November 2, 2023.

Naira to dollar
Analysts have noted how those who are betting against the naira lost big due to recent changes. Photo Credit: CBN, BDC
Source: UGC

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The development marks a significant recovery of the naira which continued to fall against the dollar before the CBN began clearing the forex backlog.

Legit.ng had reported that the naira made history on Tuesday, October 24, 2023, when it hit its lowest on the streets against the US dollar, where it crashed to N1,310 per dollar.

CBN data shows naira strengthen

Data on the CBN website shows that the naira was sold for N783.67/$ in the Importers' and Exporters’ forex market, down from N807.27/$ on Thursday.

Speaking to the development, analysts have noted how those who bet against the naira lost big due to recent changes.

In a chat with Olumide Adesina, a financial analyst on Friday, he said,

“Speculators are being hit hard by the FX market, the naira has gained more N500/$ at the Black market in the past 9 days and naira bulls are holding below N900 levels

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“The naira has also closed the gap between the black and official market, with a differential of less than N50 to the dollar”

Aminu Gwadabe, President of the Association of Bureau de Change Operators of Nigeria, said the CBN's move would cause pain for currency speculators, according to a Punch report.

“What is happening in the market and the continuous naira rebounds are the manifestations of the CBN double-edged sword measures of dollar liquidity injection and naira mopping through the instrumentality of interest rates hikes.
“It is a good development as it is the greatest risk to speculate, hoard, and substitute naira for other currencies.”

Describing the situation, he said there has been “panic selling as against panic buying”.

N1,525/£: Naira crashes against pound at black market despite CBN's plan to clear $10bn backlog

Legit.ng earlier reported that the naira fell against the dollar as well as the pound and euro in the unofficial market, known as the black market.

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CBN crashes dollar, pumps $6.7 billion into banks as naira recovers

Data by Abokifx, an online platform that collates exchange rates, showed the naira crashed and sold for for N1,310 per dollar while buyers paid N1,290 for one dollar on Wednesday, October 25, 2023.

Source: Legit.ng

Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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