Traders Sell Dollar at New Exchange Rate As Naira Bounces Back in Forex Markets

Traders Sell Dollar at New Exchange Rate As Naira Bounces Back in Forex Markets

  • Nigerian banks such as Access Bank, UBA, and GTB, alongside currency traders, adjusted the selling rates for the dollar positively
  • This follows a strong performance of the naira in both the unofficial and official foreign exchange markets
  • Nigerians will be hoping that the new month of May is favourable for the naira after a poor performance recorded in April

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 naira appreciated against the United States Dollar in the official market, the Nigerian Autonomous Foreign Exchange Market (NAFEM), on Tuesday, April 30, 2024.

Naira to dollar exchange rate
Nigerian currency improved against the US dollar Photo credit: Benson Ibeabuchi
Source: Getty Images

According to data from FMDQ Securities, the naira closed against the dollar on Tuesday at N1,390.96/$1.

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Naira gets a boost as dollar supply rises to $7 billion in official market

This represents a 1.9% or N28.15 increase in value compared to the exchange rate of N1,419.11/$1 recorded the previous day, Monday, April 29, 2024.

This increase was attributed to a boost in dollar supply.

On Tuesday, a total of $225.36 million in forex transactions were recorded, a 52.4% or $77.53 million improvement from the previous session's $147.83 million.

Naira against the pound, euro

Also, CBN data showed that the naira stayed firm against the pound sterling and the euro in the official market for another trading session, closing at N1,453.07/£1 and N1,247.03/€1, respectively.

Meanwhile, traders at the parallel market told Legit.ng that the naira gained N20 against the US Dollar.

Abudulahi, a BDC trader, said the naira settled at N1,380/$1 on the black market compared with Monday's closing rate of N1,400.

Read also

Naira Hits lowest in all markets since March as Access, Zenith, Other banks sell dollar at new rates

He said:

"The naira performed stronger against the US dollar, maybe because of the holiday, the demand for dollar reduced."

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 Central Bank of Nigeria also instructed that the BDCs to sell at a maximum of N1,269/$1 to achieve its objective.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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