The naira appreciates against the US dollar and other currencies in the foreign exchange marketThe Central Bank of Nigeria data showed that the naira gained in both the official and unofficial exchange marketsExperts believe that the naira has found its value in the official market with the latest exchange rates
Henzodaily.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 value of the Nigerian currency improved against the US dollar in all foreign exchange markets at the end of last week.
According to official market data, the naira ended last week(Friday, January 17) in the Nigerian Foreign Exchange Market (NAFEM) at N1,547.58/$1.
Nigerian currency appreciates again
Photo credit: Bloomberg/contriburor
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Friday’s exchange rate is 0.06% or N89 Kobo improvement compared to the previous day’s value of N1,548.47/$1.
The new exchange rate means the naira will start the new week positively after two days of appreciation.
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After losing 70% of its value, Naira finally becomes stable in official market
Speaking to Henzodaily.ng on the naira’s performance, Aminu Gwadabe, the President of the Association of Bureau De Change Operators of Nigeria (ABCON), called for the Central Bank of Nigeria to continue working with BDCs to ensure Naira stability.
His words:
“I have always stressed and it is on record that partnerships between the CBN and the BDC sector remains highly effective tool for ensuring price stability and also narrowing the gap between official and black market.
The relationship betwene CBN and BDC will also facilitate transaction monitoring, and managing demand measures.”
Meanwhile, Vestance Nigeria, an agribusiness advisory firm, the exchange rate is projected to trade between N1,650/$1 and N1,750/$1 this year in its Resilience and Recovery for Agribusiness in 2025 outlook report.
Part of the report reads:
“The Central Bank of Nigeria (CBN) will continue implementing reforms to enhance exchange rate market transparency while maintaining higher interest rates to curb inflationary pressures and attract foreign portfolio management.”
Read also
Naira ends losing streak in official market, recovers 0.17 per cent
Naira, pounds, euro exchange rate
CBN data shows that the naira appreciated against the pound sterling by N20.84, closing at N1,883.59/£1 compared to the previous day’s rate of N1,904.43/£1 in the official market.
Against the euro, the Nigerian currency gained N10.45, settling at N1,590.34/€1, in contrast to Thursday’s closing price of N1,600.79/€1.
Other exchange rates
CFA: N2.43Yuan/renminbi: N211.04Danish krona: N213.19Euro: N1590.34Yen: N9.94Riyal: N412.23South African rand: N82.27Swiss franc: N1692.63Pounds sterling: N1883.60
Naira black market
The naira’s positive momentum extended into the parallel market, commonly called the black market.
Street currency traders told Henzodaily.ng that the dollar dropped in value against the naira on Friday.
Abudulahhi, a BDC trader, told Henzodaily.ng:
“On Friday, we sold the dollar at N1,676/$1 compared to N1,680/$1 the previous day, while the pound and euro were exchanged at N2,055 and N1,700, respectively.”
Good news for naira
Read also
CBN adjusts exchange rates as naira tumbles in official and parallel markets
Ealier, Henzodaily.ng reported that the CBN has revealed that Nigeria’s foreign reserves have improved, giving more hope for naira appreciation.
The latest reserves indicated that it is now $40.92 billion as at January 6, an increase from $40.31 billion recorded as of December 6, 2024.
The January 6 reserves balance was also the highest since December 9, 2021, when it stood at $40.93 billion.
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Source: Henzodaily.ng