Naira Bounces Back, Appreciates Against US Dollar in Official Market

• The value of the Nigerian currency appreciated against the United States dollar in the official market on Thursday
• However, it was a different story for the Nigerian currency in the two unofficial foreign exchange markets
• The CBN governor is determined to find a solution and stability to the Naira's free fall by improving liquidity

Naira value at the official market has appreciated against the US dollar at the close of transactions in the official foreign exchange market on Thursday, February 15, 2024.

Data from FMDQ securities shows that in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira gained against the Dollar to quote at N1,498.25/$1.

This represents a 0.34% or N5.13 improvement for the Naira compared to Wednesday's closing rate of N1, 503.38/$1.

There were no changes in the exchange rate for the Naira against the Pound Sterling and the Euro on Thursday in the official market.

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CBN data showed the Naira's exchange rate against the Pound Sterling at N1,905.76/£1, while it traded against the Euro at N1,625.53/€1

Naira to the Dollar at unofficial markets

It was a different scenario for the Naira in the unofficial market as it continued its free fall.

Legit.ng reported that the Naira lost N41 of its value against the Dollar to sell at N1,605/$1, in contrast to the N1,564/$1 it traded on Wednesday.

Similarly, the Nigerian currency depreciated against the dollar currency in the Peer-to-Peer (P2P) window by N31 to close at N1,597/$1 compared with Wednesday's rate of N1,566/$1.

CBN determine to find a solution

The Central Bank of Nigeria continued its efforts to stabilise the market with the latest policy, prohibiting authorised commercial banks from disbursing cash to customers for Business Travel Allowance (BTA) and Personal Travel Allowance (PTA).

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The CBN also stopped international oil companies (IOCs) operating in Nigeria from immediately remitting 100% of their forex proceeds to their parent firms abroad.

This means these firms can repatriate only 50% of their proceeds abroad immediately, while the other 50% will be repatriated after 90 days.

FG addresses the Naira the dollar exchange rate

Legit.ng earlier reported that Ben Akabueze, the director-general of the federation's budget office, said the Naira would strengthen in value in the foreign exchange market in 2024.

Speaking in an interview with Channels TV on Tuesday, December 26, 2023, Akabueze said this would be possible as the country expects an increase in dollar supply.

He noted that the Tinubu-led government expects the reforms initiated in 2023 to start yielding results in 2024, which is why it maintains a positive stance on the exchange rate.

Source: Legit.ng