Traders Sell Dollar at New Exchange Rate As Naira Appreciates Again at Official, Black Markets

• The Nigerian currency, the naira, continues to improve against the US dollar in the foreign exchange market
• Checks showed that the naira rose by 0.4% against the dollar in the official market and by N2 in the black market
• The strong performance of the naira has helped close the exchange rate gap between the official and black market

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience and in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The naira appreciated against the United States dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Data from FMDQ securities showed that at the NAFEM window, which is the official market, the naira closed at N1,608.98/$1 on Thursday, March 14, 2024.

This represents a 0.4 % or N6.96 increase in value for the naira compared to N1,615.94/$1 exchanged on Wednesday, March 13, 2024.

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Naira appreciates against US dollar in official, black markets, again

Naira's performance comes despite the fact that the value of foreign exchange (FX) transactions reduced by $5.1 million to $243.65 million from $248.75 million.

In the parallel market, Suliamon Hassan, a BDC trader at Airport Road, Lagos, told Legit.ng that the naira enjoyed value improved against the US dollar and was sold at N1,605/$1 on Thursday.

This is a N2 increase in value when compared to the N1,607/$1 it was transacted on Wednesday, March 13.

He further added:

"For now, I don't see the dollar rising again above the N1,600 exchange rate band. I believe it has reached its peak within the last two months. Anyone hoarding dollars hoping for an increase is likely to lose out."

Naira vs euro, pound

It was, however, a different story for the naira as it performed badly against the British pound sterling to close at N30.27 to trade at N2,066.33/£1 compared with Wednesday's value of N2,036.06/£1.

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CBN data also showed that against the euro, the Nigerian currency depreciated by N26.08 to settle at N1,766.62/€1 versus N1,740.54/€1 on Wednesday, March 13, 2024.

US bank predicts naira will bounce back

Legit.ng earlier reported that a US-based investment bank, Goldman Sachs, predicted a new exchange rate for the naira against the dollar.

Goldman Sachs said the naira is expected to rebound and close the year at N1,200 per dollar at the official market.

The Nigerian currency currently exchanges in the official and black markets above N1,600 against the US dollar.

Source: Legit.ng