- Nigerian currency appreciated in the official market, closing the week strong after falling to its lowest level against the US dollar
- The strong performance followed the positive sentiments from President Tinubu's visit to the Kingdom of Saudi Arabia
- The visit came with a promise that there would be support to the CBN to help tackle the Nigerian currency problems
Dave Ibemere has over a decade of experience covering Business and the Economy.
Nigerian currency improved against the US Dollar on Friday, November 10, 2023, after falling to a record low at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Data from FMDQ securities showed that the Naira closed at N780.14/$1 during the week's last trading session at the official market.
This represents 21.7% or N216.61 appreciation compared to the record low of N996.75/$1 in the preceding session of Thursday, November 9, 2023.
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The value of the Naira improved amid news that the Kingdom of Saudi Arabia has promised to help make available enough dollars exchange to fix Nigeria's forex scarcity.
A part of a statement from the minister of information and national orientation, Mohammed Idris, on the visit reads:
"Saudi Arabia is very eager to see Nigeria thrive under President Bola Tinubu and realize its full potential as the economic giant of Africa."
Naira to dollar exchange rate at unofficial market
While the Naira improved in the official market, the support news has yet to impact the unofficial market.
In the peer-to-peer (P2P) segment, the Naira weakened against the dollar by N19 to settle at N1,041/$1 versus the previous day's value of N1,027/$1.
Also, the value of the Naira slumped against the dollar by N5 to trade at N1,145/$1, in contrast to the preceding day's rate of N1,140/$1.
Similarly, data from the Central Bank of Nigeria showed that the Naira performed poorly against the Pound Sterling in the spot market on Friday, losing N130.86 to trade at N1,185.43/£1, compared with the earlier day's value of N1,054.57/£1.
Against the Euro, it depreciated by N116.51 to sell at N1,034.18/€1, versus the N917.67/€1 it traded in the preceding session.
Experts give CBN simple solution to naira crises
In an earlier report by Legit.ng, financial experts proffered solutions to the continued depreciation of the Naira.
They noted steps the CBN and the federal government could take to end the naira exchange rate problems.