Nigerian Naira Continues to Strengthen Against the Dollar

The Nigerian Naira exhibited further signs of improvement against the US Dollar in recent trading sessions, maintaining its upward trajectory. On Thursday, the Naira advanced against the Dollar in both the black market and the official Investors and Exporters (I&E) window.

At the black market, the Naira-Dollar exchange rate reached N870/$1, showcasing another day of positive movement. This development followed a previous day’s gains, reflecting a trend of increasing value for the Naira against the Dollar.

Similarly, the official I&E window also experienced a notable appreciation of the Naira. It climbed to N759.86 per dollar, marking a 1.92% increase from the previous day’s closing rate of N774.77 per dollar.

This upward movement resulted in a substantial gain of N14.91 for the Naira against the Dollar within a single day in the I&E window.

Data from the I&E FX window indicated that the Naira’s trading day commenced at N781.66/$1. Throughout the day, it saw fluctuations, reaching a peak of N799/$1 and a low point of N740 per dollar. However, the Naira rebounded and concluded the day at N759.86 per dollar.

Despite these positive developments, the I&E window saw a significant drop of 36.17% in forex supply on Wednesday. The supply plummeted from $95.79 million to $61.14 million during the intraday market session, leading to a $34.65 million loss in forex turnover.

Notably, the Naira gained 2.25% against the Dollar, closing at N870/$1 among traders on August 17th, 2023. This indicated progress compared to the rate of N890/$1 recorded on the previous day, Wednesday.

The improvement in the Naira’s value extended to the British Pound as well. The Naira registered a 2.95% increase against the British Pound, rising from N1185/£1 on Wednesday to N1150/£1 on Thursday.

The latest data from the central bank revealed a slight decrease in Nigeria’s external reserves. As of August 15th, 2023, the country’s reserves stood at $33.094 billion, down from the previous figure of $33.845 billion.

These recent developments underscore the Naira’s ongoing efforts to strengthen its position against foreign currencies, driven by various market dynamics and initiatives from relevant authorities.

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