Naira Value Rises in Black Markets, Falls in Official Market Against US Dollar

• The Nigerian currency recorded a mixed performance against the United States Dollar in the forex markets
• The latest data shows that it fell in the official market, while it improved in the unofficial markets
• The Central Bank of Nigeria has a tough week ahead in the foreign exchange markets as the naira resumes its free fall

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

The Nigerian naira has recorded another poor performance against the US dollar in the official market.

Data rom FMDQ securities showed that the naira weakened in the Nigerian Autonomous Foreign Exchange Market (NAFEM) to N1,339.23/$1 on Friday, April 26, 2024.

Friday's exchange rate signifies lost N2.2% or N29.35 on Friday to trade at in contrast to Thursday’s closing value of N1.309.08/$1.

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It is also the sixth straight trading session in which the value of the naira has dropped.

However, CBN data showed that naira improved its value against the British pound sterling in the official market by N202.13 to settle at N1,453.07/£1 compared with the preceding day’s rate of N1,655.20/£1.

While against the euro, it appreciated by N176.01 to trade at N1,247.03/€1 versus the N1,423.04/€1 it exchanged a day earlier.

Naira to the dollar at the black market

There is hope for naira in the black foreign exchange market, also known as the parallel market.

BDC traders Musa Ahmed who spoke to Legit.ng said the naira improved in value against the US dollar.

He said:

"The naira exchanges against the dollar at a rate of N1,400, increasing from N1,420 reported a day earlier."

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UK firms predict exciting exchange rate

Earlier, Legit.ng reported that two UK-based financial institutions have predicted a new exchange rate for the naira against the dollar.

Goldman Sachs and Standard Chartered believe the naira will rebound and close stronger in 2024.

Their predictions are based on the current reforms by the Cardoso-led CBN, which has helped the naira achieve an N1572.86/$ rate on Monday from above N1,600.

Source: Legit.ng