Naira Hits New Exchange Rate High Against USD in All FX Markets
- The naira remains strong against the dollar in in the official market and unofficial foreign exchange market
- For 10 days the value of the naira has exchange below N1,500 in the Nigerian Foreign Exchange Market
- The latest exchange rate movement has been helped by the Central Bank of Nigeria recent policies
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The naira has maintained strong perfrmance against the dollar at the official market, trading below the N1,500/$ level for 10 consecutive sessions.
According to data from the Central Bank of Nigeria (CBN), the naira first crossed the N1,500/$ on September 15, closing at N1,497/$ for the first time in over six months.
Source: Getty Images
Since then, it has sustained the momentum, ending last Friday’s session at N1,480/$.
Naira against dollar black market
The naira also posted gains in the parallel market, where it appreciated by 0.13% to an average of N1,510/$.
At the same time, Nigeria’s external reserves rose to $42.23 billion from $42.03 billion in one week, a 0.47% increase that analysts said improved the CBN’s ability to manage foreign exchange supply and demand, while boosting market confidence.
What analysts have to say about naira
Several analysts has provided insight into the performance of the naira in the foreign exchange markets.
AIICO Capital, in its weekly market update, pointed to stronger liquidity from local players, oil receipts, and foreign portfolio inflows as the drivers of the naira’s performance.
The report said:
“Trading opened actively with demand largely matching supply, keeping rates within N1,492–N1,495/$. Midweek, tight flows pushed the rate to N1,498/$ before stronger local dollar inflows and modest CBN interventions, estimated at $20 million, eased pressure.
"Toward the end of the week, foreign portfolio inflows supported a stronger close in the N1,471–N1,487/$ range.
"Overall, the naira gained 49 basis points week-on-week, closing at N1,480.66/$ at the NAFEM window."
Source: Getty Images
The firm added that the CBN’s ongoing policy adjustments, supported by fiscal measures from the federal government, are expected to keep the FX market stable in the near term.
Here is the latest naira to dollar exchange rates published by CBN
- CFA: N2.66
- Yuan/Renminbi: N207.49
- Danish Krone: N232.11
- Euro: N1,729.41
- Yen: N9.89
- Riyal: N394.78
- South African Rand: N85.02
- SDR: N2,029.24
- Swiss Franc: N1,852.44
- Pounds Sterling: N1,981.27
- US Dollar: N1,480.66
Top Nigerian bank predicts new naira to dollar exchange rate
Earlier, Legit.ng reported that FBNQuest Merchant Bank has projected that the naira will end the year at N1,662 per dollar, exchange rate.
The Lagos-based research and investment bank’s analysts gave the prediction in its mid-year outlook titled “Steering the Course: From Volatility to Stability."
There is also a projection of positive figures for the Nigerian economy, driven by the services sector and improved GDP following rebasing.
Source: Legit.ng
