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.

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

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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.

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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