New Exchange Rates As Naira Gains Against Dollar, Euro, Pound Sterling in Official Market

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  • The naira has recovered some of its loss value against the US dollar in the official foreign exchange markets
  • The naira recorded a strong performance on the back of the improvement of forex supply in the NAFEM window
  • The International Monetary Fund has predicted that the naira will improve and has provided a reason

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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 Nigerian currency, the naira, has appreciated against the US dollar in the official Nigerian Autonomous Foreign Exchange Market (NAFEM).

According to data from FMDQ Securities, the naira closed at N1,600.00/$1 on Friday, October 25, 2024.

Naira value improves against US dollar Photo credit: Bloomberg/contributorSource: Getty Images

The latest exchange rate represents a 0.7% or N1.20 appreciation when compared to the N1,601.20/$1 previous day's exchange rate.

Good News For Naira as Dollar Inflows Hit $57 Billion Monthly Amid Reserve IncreaseThe Central Bank of Nigeria (CBN) has disclosed that foreign exchange inflows into the Nigerian economy hit $57bn in August, exceeding the previous year's recordby  Pascal Oparada, 25 Oct 2024

Naira to pound, euro

It was a similar outcome for the naira against the pound sterling and the euro in the official market in the week’s final session.

Data from the CBN showed that the naira against the pound Sterling by N7.77 to trade at N2,132.29/£1 compared with Thursday’s closing price of N2,140/£.

While against the euro, it gained N11.98 to sell for N1,768.18/€1 versus the previous day’s value of N1,780.16/€1.

The improvement of the naira happened as forex supply in the market increased by 23.4% or $53.94 million to $284.93 million from the $230.99 million recorded a day earlier.

Naira to dollar black market

Naira, however, fell to the dollar on the black market. Traders who spoke to Legit.ng said the dollar was stronger against the naira on Friday.

Banks, Dealers Adjust Exchange Rates as Dollar Crashes in Official Window, FX Reserves RiseThe Nigerian currency, the naira, appreciated against the US dollar by N49 in the official and depreciated in the parallel window to N1,739 as FX reserves rose.by  Pascal Oparada, 25 Oct 2024

A BDC trader Abudulahhi said:

"On Friday we sold the dollar at N1,730$1, in contrast to the N1,725/$1 it was exchanged on Thursday. This is N5 exchange rate difference."

IMF predicts naira stability

Legit.ng reported that the International Monetary Fund has predicted that the naira will improve due to the Central Bank of Nigeria's efforts to clear foreign currency backlogs and recent interest rate hikes.

IMF stated this in its most recent Global Financial Stability Report.