- Despite the pressure in the forex market, the value of the naira appreciated against other foreign currencies
- Latest CBN data showed the naira gained across the United States dollar, British pound and also the euro
- There are worries that the decision by Dangote to stop sales of petrol in local currency will increase pressure
Legit.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 Naira has appreciated after days of losses against the United States dollar and other currencies in the foreign exchange market.
Data at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, March 20 showed that the naira closed at N1,534.33/$1.
Read also:Unlock The Power Of Uva Mychart Your Ultimate Guide To Health Management
This represented an improvement of N13.19 or 0.85% when compared with the previous day’s N1,547.52/$1.
Thursday’s naira performance marked a return to good performance after days of consecutive losses.
Naira against pound, euro
Similarly, the value of the naira improved against the British Pound Sterling at the same FX market segment by N12.50 to settle at N1,972.89/£1 compared with Wednesday’s closing price of N1,985.39/£1.
While against the euro, it gained N10.30 to close at N1,657.81/€1, in contrast to the N1,668.11/€1 it was exchanged on Wednesday.
In the parallel market also known as the black market it was a different story for the naira,
Abdulahi a BDC trader who spoke to Legit.ng said there was no movement in the forex trading.
Read also:Pastor Ashimolowo Funds Lifesaving Surgeries For Over 700 People In Ibadan Crusade This Is Love
He said:
"The market was a bit calm. We are currently aware of Dangote's decision, and we, the BDC traders, are observing the next move by the federal government and the CBN before making adjustments.
"For now, the US dollar is sold at N1,585/$1, the euro at N1,695, and the pound sterling at N2,025."
Naira against other currencies
The CBN also provide a breakdown of the naira exchange rate in the NFEM window.
- CFA: N2.54
- Yuan/Renminbi: N211.15
- Danish Krona: N222.23
- Euro: N1,657.81
- Yen: N10.28
- Riyal: N408.05
- South African Rand: N84.05
- Swiss Franc: N1,731.47
New exchange rate expected over dollar petrol sales decision
Market analysts have predicted that the decision of stop petrol sales in naira will trigger a rush for dollars among petroleum marketers and stakeholders, anticipating increased transactions in US dollars for purchasing products.
They believe that the shift towards sourcing crude in dollars could potentially is expected to fuel a surge in demand for the US dollar in Nigeria’s foreign exchange market.
BDC operators accuse banks of not selling dollars
Earlier, Legit.ng reported that Bureau de Change (BDC) operators in Nigeria accused commercial banks of failing to sell foreign exchange to them.
They claimed the situation placed the naira in a precarious position in the foreign exchange markets.
They also stated that some banks that managed to sell offered unfavourable rates and lower margins, creating business uncertainties.
Proofreading by James Ojo, copy editor at Legit.ng.
