New Exchange Rate As Naira Appreciates Against Dollar, Pounds, Euro in All Forex Markets
- The Nigerian currency extended its strong performance against the US dollar in the foreign exchange markets
- This improvement follows an increase in dollar supply in the official market and ease of demand pressure
- The CBN Monetary Policy Committee (MPC) has taken another decision to support the naira's value in the exchange market
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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 value of the naira appreciated against the US dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, May 21, 2024.
Data from FMDQ securities showed that the naira improved against the dollar to close at N1,465.68/$1.
Source: Getty Images
Tuesday's exchange rate is 0.23% or N3.31 compared to the N1,468.99/$1 closing rate on Monday, May 20.
Also, CBN data showed that the naira improved its value against the pound sterling in the official market and the euro.
For the British pound sterling, the naira gained N21.38 to sell at N1,882.47/£1 on Tuesday compared with the N1,903.85/£1 sold on Monday.
While against the euro, it also appreciated by N20.29 to quote at N1,610.16/€1 versus Monday's rate of N1,630.45/€1.
The naira's positive performance is due to the increase in the foreign exchange (FX) supply by $106.76 million, or 66.1%, to $268.17 million from $161.41 million.
Naira to dollar black market
The naira's story was similar in the unofficial parallel market, also known as the black market.
Checks by Legit.ng show that the naira appreciated against the dollar by N10 to trade at N1,470/$1, in contrast to the previous day's rate of N1,480/$1 by some BDC traders.
A BDC trader, Abudulahhi, explained:
"Naira performed strongly because of low demand compared to previous days. For now, we don't know what to expect."
CBN gives assurance
After the conclusion of a two-day Monetary Policy Committee (MPC) meeting, Yemi Cardoso, the governor of the Central Bank of Nigeria (CBN), assured Nigerians that investors were beginning to return to the country due to a series of measures the apex bank has taken to sanitize the forex market.
The CBN believes the inflow will be sustained, helping the naira find its true value.
CBN stops daily CRR debits of Access, others
Earlier, Legit.ng reported that the Central Bank of Nigeria announced that it would stop daily Cash Reserve Requirement (CRR) debits for banks.
The apex bank said it would adopt an updated CRR mechanism intended to facilitate banks' capacity for planning, monitoring and aligning with records with the CBN.
This was disclosed in a letter addressed to all banks and signed by Adetona Adedeji, the acting director of the banking supervision department.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
