Naira Appreciates Again at Official, Parallel Market As CBN Crashes Dollar Exchange Rate

• Naira has once again appreciated against the United States dollar in the foreign exchange market
• Checks showed that the Nigerian currency gained 1.6 % in the official market and 3.75% in the unofficial markets
• The Central Bank of Nigeria has taken another bold step to stabilise the naira with a round of sales to BDC operators

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 has again appreciated against the US dollar in the official market, also known as the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Data from FMDQ securities showed that the Nigerian currency rose in value to N1,408.04/$1 on Monday, March 25, 2024.

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This represents a 1.6% increase in value for the naira, or N23.45, compared with the preceding session's N1,431.49/$1.

The naira's performance comes as forex transactions improved by 1.1%, or $22.09 million, reaching $221.80 million from the $199.71 million achieved last Friday.

It was a similar story for the naira against the British pound and euro in the official market.

Data from the CBN showed that the naira appreciated against the pound sterling by N68.17 in the spot market, closing at N1,772.78/£1 compared to N1,840.95/£1 in the preceding session.

Against the euro, it appreciated by N55.29, selling at N1,531.29/€1, contrasting with the preceding session's N1,576.68/€1.

Naira to dollar in the unofficial market

The good news continued in the parallel market, also known as the black market.

A BDC operator who gave his name as Bashir told Legit.ng that the market is showing signs of improvement

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He said:

“We bought and sold dollar for N1,410/$1 and N1,415/$1 today. We are yet to recieve any dollar directly from CBN. What we buy from the streets and other sources we sell to the market.

"To be honest, the dollar is still scarce but there is signs of improvement.”

CBN crashes dollar

Earlier, Legit.ng reported that the CBN carried out another round of forex sales to licensed Bureau De Change Operators in the country.

Each BDC received $10,000 as the CBN bid to reduce the exchange rate at which the dollar is sold on the street.

The CBN instructed the BDCs to sell at a maximum of N1,269/$1 to achieve its objective.

Source: Legit.ng