Good News: Naira Appreciates in Official, Black FX Market
- The value of the naira closed strongly in the official and black market against the US dollar after trading on Thursday
- The good performance, although slight, is the second straight gain for the naira in the official FX market
- President of the Institute of Chartered Accountants of Nigeria, ICAN, believes the naira will be devalued after the 2027 elections
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 appreciated against the United States dollar in the official and unofficial foreign exchange markets.
The latest update from the Central Bank of Nigeria showed that the naira closed at N1,460 on Thursday, October 23, in the Nigerian Foreign Exchange Market.
Source: Getty Images
The new rate is a N3 appreciation when compared to Wednesday's closing rate of N1,463.
Here is the updated exchange rates on Thursday
- US Dollar: N1,460.49
- British Pound: N1,949.03
- Euro: N1,695.49
- Chinese Yuan: N205.04
- Saudi Riyal: N389.42
- Swiss Franc: N1,833.18
- South African Rand: N84.39
- Japanese Yen: N9.57
- CFA Franc: N2.58
Naira in the black market
The positive performance of the naira was also witnessed in the unofficial exchange market.
Traders who spoke to Legit.ng revealed that on Thursday, the naira appreciated by N5.
Abudullahi, a BDC trader, said:
"We exchanged the dollar at N1,590, a gain of N5 compared to the previous rate of N1,595.
"However, the exchange rates of the euro and pound sterling against the naira remained unchanged at N1,720 and N2,000, respectively."
Source: Getty Images
Naira could be devalued after the 2027 elections
The President of the Institute of Chartered Accountants of Nigeria (ICAN), Chidi Ajaegbu, has raised concerns that the naira could face another round of devaluation, possibly after the 2027 general elections.
Ajaegbu, who serves as the 50th president of the professional body, disclosed this at the maiden edition of a public lecture organised by the Department of Accounting and Finance at Godfrey Okoye University.
He cautioned that the federal government’s continued reliance on borrowing poses serious economic risks, noting that excessive debt accumulation discourages investors and could further weaken the national currency, Vanguard reports.
According to him, Nigeria’s borrowing pattern under the previous administration was unsustainable.
Ajaegbu said:
“Few days after 2027, they might devalue the currency. naira has been stable in the last five to six months but this might change after the election in 2027,”
Forex reserves rise
Earlier, Legit.ng reported that Nigeria’s foreign exchange reserves have risen to $42 billion, the highest level closed.
The increase in reserves gives the Central Bank of Nigeria greater firepower to defend the naira against speculative pressures.
A stronger reserves position is crucial for Nigeria’s economic stability as it improves the country’s sovereign credit outlook, reassures investors of the government’s ability to meet external obligations, and enhances the CBN’s capacity to manage liquidity shocks.
Don't miss out! Join Legit.ng's Sports News channel on WhatsApp now!
Source: Legit.ng
