Excitement as Dollar, Pound, Euro Exchange Rates Drop Across FX Markets
- The naira continues to strengthen across both official and parallel markets against major foreign currencies
- The pound is now trading below N2,000, the euro has fallen below N1,800, while the dollar is hovering around N1,450
- Experts attribute the improvement to increased forex supply and expect further gains following Nigeria’s removal from the FATF grey list
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.
Nigerians are expressing relief as the naira appreciates against the US dollar, British pound, and euro across both official and parallel markets.
The strong performance comes as the Financial Action Task Force (FATF) formally announced Nigeria’s removal from the list of jurisdictions under increased monitoring, known as the "grey list”, following a successful on-site evaluation of reforms implemented across the financial system.
Source: Getty Images
Naira appreciates against dollar, pound, euro
Data from the Central Bank of Nigeria(CBN) shows that the naira has appreciated against the dollar to N1,455.50, a significant rise compared to the N1,630 per dollar recorded in July.
Naira also improved against the pound and euro, exchanging at N1,946.5 per pound and N1,696 per euro, respectively.
In the parallel market, checks by Legit.ng confirmed a similar trend.
The naira exchanged between N1,482 and N1,492 per dollar, down from N1,520 recorded earlier in the week. The pound also weakened to around N2,000, while the euro fell to N1,720.
Abubakar Musa, a trader, told Legit.ng
“The market is in favour of naira in the last few days. There is more forex in the market reason we are selling pound below N2,000 exchange rate."
- CFA: N2.59
- Yuan/Renminbi: N204.70
- Danish Krona: N227.04
- Euro: N1,696.33
- Yen: N9.54
- Riyal: N388.77
- South African Rand: N84.43
- Swiss Franc: N1,834.83
- Pound Sterling: N1,946.52
- US Dollar: N1,457.96
Source: Getty Images
Nigeria removed from FATF grey list
In February 2023, the FATF, a financial crimes watchdog based in France, placed Nigeria on the grey list.
The message from the global community was clear: the nation needed more vigorous enforcement, better coordination, and greater transparency.
The removal of Nigeria from the grey list showed that the country has made progress in strengthening its anti-money laundering and counter-terrorism financing framework.
Bismarck Rewane, CEO of Financial Derivatives Company, said that the removal of Nigeria from the grey list means a whole lot, noting it will boost the naira.
Also, Tayo Oviosu, CEO of Paga, said:
“This is a big deal because it opens up the country for FDI and engagement from the West, especially."
The CBN also welcomed the FATF decision reinforces the broader restoration of global confidence in Nigeria’s economic management.
Naira to appreciate to N1,400/$ before December
Earlier, Legit.ng reported that analysts have predicted that the naira would end the year between N1,400 and N1,450 per dollar.
CardinalStone Research disclosed in its macroeconomic update that it anticipates the fall in inflation to boost the Nigerian currency.
The research firm stated that the ongoing reduction in inflationary trends is good for the naira.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
