The naira’s value rose against the dollar on Thursday, January 23, 2025, marking a second day of gain for the local currencyThe naira traded strongly against the dollar at N1,548.05 per dollar as against the N1,552.78 it traded the previous dayThe development came as CBN governor Olayemi Cardoso predicted robust foreign exchange inflows into Nigeria
Henzodaily.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian currency, the naira, rose in value for the second day against the US dollar on Thursday, January 23, 2025, following heightened activities in the forex markets.
The naira, which has remained relatively stable in recent weeks, appreciated N1,548.5 per dollar from N1,552.78, representing 0.28% in the official window.
The naira remains strong against the dollar in the official window
Credit: Bloomberg/Contributor
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The naira stabilises in the FX market
Henzodaily.ng reported that the local currency has been hovering between N1,548 and N1,555, indicating that it may have found its actual value since its devaluation by the Nigerian government in 2023.
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Analysts say that the current rate indicates that the currency floated by President Bola Tinubu’s government finally found its footing without the periodic interventions of the Central Bank of Nigeria (CBN).
They stated that governments, individuals, and businesses can now plan using the current exchange rate of the naira as volatility has thawed in the FX market.
The naira depreciates in parallel market
Meanwhile, data from FDQ Exchange show that currency dealers quoted the dollar at a high of N1,554 per dollar and a low of N1,548.25 in the official window.
An FX trader, Abbas Yishau, said that the parallel market faces increased FX demands from those unable to access the official market.
However, the naira lost N5 in the parallel segment of the FX market, trading at N1,665 from N1,660 on Thursday, January 23, 2025.
“The demand has risen in the black market because most people cannot access the official window because they do not have the criteria to do so,” he said.
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CBN predicts robust FX inflows into Nigeria
The development comes as the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said the remittances into Nigeria are expected to double as the current naira value makes it competitive to attract investment into Nigeria.
According to the CBN boss, there is hope that foreign investors will come to leverage the competitive nature of the naira.
Cardoso noted that the reforms have reduced the disparity between the parallel and official rates while fostering stability in the FX market.
Leadership reported that Cardoso said the recent initiatives, including the recently launched non-resident BVN and accounts, responded to the dialogue between the CBN and Nigerians in the diaspora.
Cardoso said:
“My discussions with the diaspora show that everybody is very committed to doubling the levels that we are in. So, there are good things ahead on the foreign exchange side. Our efforts have resulted in a significant milestone in 2024 with over $6 billion in foreign capital inflow into Nigeria and external reserves exceeding $40 billion, signalling growing investor confidence.”
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Banks begin sale of dollars to Nigerians
Henzodaily.ng earlier reported that some commercial banks resumed selling their customers Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), showing a shift in FX availability after a prolonged supply shortage.
The development came as financial institutions adjusted to market demands and the Central Bank of Nigeria (CBN) policy changes.
Nigeria’s oldest financial Institution, First Bank, announced the resumption of FX sales for various international transactions.
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Source: Henzodaily.ng