Naira appreciates as official exchange rate settles at N1,617.96/$1

In the official market, the naira exhibited a marginal strengthening against the US dollar, concluding at N1,617.96/$1.

This marks a 0.58% improvement compared to the previous week’s Friday closing rate of N1,627.4/$1.

The exchange rate has remained above N1600/$1 since the 5th of March due to insatiable demand for dollars as agents keep buying and hoarding forex.   

Moreover, data from NAFEM showed that the forex transactions amounted to $96.13 million on the week’s first trading day, marking a significant drop of 64.31%, compared to the previous day’s turnover of $269.35 million.

Also, CBN data indicated that the foreign reserve stood at $34.11 billion as of 7th March 2024 as against $34.02 billion posted in the previous day.

Recommended reading: Time running out for naira as U.S dollar index hits two-month low

More Insights   

The naira had mixed performance against major currencies on Thursday, according to data from the Investors and Exporters (I&E) window. 

• The I&E window showed a high of N1650/$1 and a low of N1511/$1, indicating a gap of N139/$1. 
• The daily turnover at the close of trading was $96.13 million, a decline of 64.31% from the previous trading day. 
• Also, the naira weakened at the parallel market where forex is traded unofficially, exchanging at N1,623/$1, a fall of 0.18% from N1,620/$1 traded on Friday. 
• In the same way, the naira lost 0.34% against the pound sterling, ending at N2,040/£1, compared to N2,033/£1 in the previous trading day. 
• While against the euro, the naira depreciated by 0.58%, ending at N1715/€1, as opposed to N1705/€1 in the preceding session. 

Recommended reading: “Naira looks Cheap”, to appreciate to N1,200/$1 – Goldman Sachs