Naira Increases Above N1,600/$1 Despite CBN Measures to Save Naira

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Naira Increases Above N1,600/$1 Despite CBN Measures to Save Naira

The official market witnessed a slight gain in the value of the Naira against the US Dollar, reversing the downward trend of the previous two days.  

The Naira closed at N1,602.17/$1, a 0.22% improvement from N1,605.74/$1 on the prior day.  

However, the Naira lost some ground in the parallel market, where it traded at N1630, down from N1625 on the previous day. 

The exchange rate has traded above N1600/$1 for the second straight day as demand pressures continue.  

Traders who spoke to Naijaonpoint suggest the market is awaiting another circular from the central bank which has become a consistent feature on Fridays.  

Additionally, the forex turnover declined slightly by 2.50% to $164.76 million, compared to $168.98 million on the previous day. 

Data from the NAFEM (Nigeria Autonomous Foreign Exchange Market) showed that the Naira has weakened by 3.4% since the start of the week when it closed at N1,534.19 to a dollar. 

More Insights   

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

  • The I&E window recorded an intraday high of N1635/$1 and a low of N1470/$1, with a spread of N165/$1. 
  • The daily turnover at the end of trading was $164.76 million, a marginal increase of 2.50% from the previous day. 
  • However, the naira weakened at the parallel market where forex is traded unofficially, closing at N1,630/$1, a drop of 0.31% from N1,625/$1 on Wednesday. 
  • Similarly, the naira lost 0.74% against the pound sterling, closing at N2,015/£1, compared to N2,000/£1 in the previous trading day. 
  • On the other hand, the naira appreciated by 1.12% against the euro, closing at N1701/€1, as opposed to N1720/€1 on Wednesday.