Naira to Dollar New Exchange Rate Shows Gap at Official and Black Market Now N146
- Nigerian currency, the naira, is on the rise at both the official and unofficial foreign exchange markets
- The latest exchange rate shows that the gap between the two forex markets is now getting closer
- The federal government, economists, and international finance companies have projected a further rise for the naira in the coming weeks
PAY ATTENTION: Join and listen to Legit.ng's X SPACE - Hard topic: How can the Naira be rescued? | Fri, Oct 27 at 7:00 PM
Dave Ibemere has over a decade of experience covering Business and the Economy.
The exchange rate gap between the foreign exchange rate markets has been reduced by more than half in just one week.
Checks by Legit.ng show that from N494 a week earlier, the exchange rate spread of the official and unofficial market is starting the new week at N146.72.
Source: Getty Images
Naira to dollar exchange rate
The latest official exchange rate recorded on Friday, November 3, 2023, shows the value of the naira closed at N793.28/$ in the Nigerian Autonomous Foreign Exchange Market (NAFEM), nearly the same rate as the previous Friday.
PAY ATTENTION: Donate to Legit Charity on Patreon. Your support matters!
The most significant appreciation of the naira against the US dollar occurred in unofficial markets.
In the black market, the naira's exchange rate to the dollar on Friday, November 3, was N940 to a dollar, a significant improvement from the previous week's rate of N1,300/$.
In the Peer-to-Peer segment, primarily utilised by fintechs, the naira appreciated N892/$ from an exchange rate of N1.278/$.
This indicates that the naira gained N360 in value in less than a week in the black market and N386 in the P2P segment.
Why naira is appreciated
The good performance of the naira follows the news that the Central Bank of Nigeria (CBN) had begun to clear some of its foreign exchange backlogs.
Taiwo Oyedele, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, in an interview with Bloomberg, has also predicted further exchange rate gains for naira against the dollar to N650 to N750.
Similarly, US multinational financial services firm JP Morgan has projected that the naira would trade at N850/$ at the official forex window before the end of 2023.
"No more N1k": BDC operators agree on new dollar to naira exchange rate
Legit.ng earlier reported that Bureau de Change dealers want to crash the dollar across the country.
ABCON initiated the move in support of the CBN efforts to stabilise the naira at the foreign exchange market
The wide disparity between the black market and the official exchange rate has been a genuine concern for the CBN.
Source: Legit.ng
