Naira/USD: New Exchange Rates in Official, Black Markets
- CBN's recent reforms have helped the naira appreciate against the dollar against the pound sterling, and the euro
- The same stability is also witnessed in the parallel market, as the naira remained stable against the dollar
- Market analysts attribute the naira’s stability to robust forex liquidity, foreign portfolio inflows, and CBN policies
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 slightly against the United States dollar in the Nigerian Foreign Exchange Market (NFEM) on Tuesday, September 2.
Data from the market showed that the Nigerian currency strengthened by 34 kobo or 0.02% to close at N1,525.76/$1, compared with the previous day’s value of N1,526.10/$1.
Source: Getty Images
Naira against pound and euro
The naira also recorded gains against other major currencies in the official market.
It appreciated by N26.30 against the Pound Sterling to settle at N2,040.03/£1, compared with Monday’s rate of N2,066.33/£1.
Similarly, the local currency advanced by N11.03 against the euro, trading at N1,776.18/€1 against the previous day’s closing price of N1,787.21/€1.
Naira in the parallel market
Meanwhile, the exchange rate of the naira to the dollar in the parallel market, commonly called the black market, remained stable.
Street traders confirmed that the latest exchanges:
“As of today, the naira is trading at N1,530 to N1,540 per dollar, N1,770 to N1,780 per euro, and N2,080 to N2,095 per pound sterling."
Snapshot of naira against other currencies
- CFA: N2.71
- Yuan/Renminbi: N213.48
- Danish Krone: N237.97
- Euro: N1,776.18
- Yen: N10.27
- Riyal: N406.70
- South African Rand: N86.08
- Swiss Franc: N1,897.37
- Pound Sterling: N2,040.03
Source: Getty Images
Naira to continue appreciation
Market analysts noted that the naira’s current movement reflects the expected trend of stability in Nigeria’s foreign exchange market.
They attribute this performance to robust FX liquidity, more efficient forex operations, and improved investor confidence in ongoing reforms.
They also predict that the momentum will likely continue in the near term, supported by sustained inflows from foreign portfolio investors (FPIs) and steady contributions from non-oil exports.
Experts note that recent measures by the Yemi Cardoso-led Central Bank of Nigeria (CBN) have been instrumental in achieving positive outcomes for the naira.
Forex inflow increases
Earlier, Legit.ng reported that Nigeria’s external reserves have recorded notable growth in recent weeks, boosting the Central Bank of Nigeria’s (CBN) capacity to support the naira.
According to CBN data, the country’s gross foreign exchange reserves climbed to $40.654 billion, reflecting a $70 million increase.
Analysts anticipate exchange rates will remain relatively stable at current levels, supported by the strengthening reserves.
Forex inflows are from portfolio investors (FPIs) who bet on Nigeria’s OMO bills and exporters’ contributions, including the latest foreign currency streams from international oil companies (IOCs).
Source: Legit.ng
