Naira Strengthens Against US Dollar In Official Exchange

Naira Strengthens Against US Dollar In Official Exchange

The Nigerian currency, the Naira, appreciated in the official market, reaching a trading rate of ₦1,607.15 per US dollar. Data from the FMDQ Exchange, which oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed the Naira strengthened by ₦9.93, marking a 0.61 percent gain from the previous trading rate of ₦1,617.08 on August 2……. CONTINUE READING

However, the total daily turnover fell to $77.09 million on Monday, down from $131.55 million recorded on August 2. In the Investor’s and Exporter’s (I&E) window, the Naira fluctuated between ₦1,620.50 and ₦1,570.00 against the dollar.

Last week, the Naira also saw a positive shift in the parallel market, strengthening to ₦1,375 per dollar from ₦1,500 per dollar. Conversely, in the NAFEM, the Naira depreciated to ₦1,339.33 per dollar. Data from FMDQ indicated that the indicative exchange rate for NAFEM increased to ₦1,329.65 per dollar from ₦1,173.88 per dollar on July 30, 2024, representing a depreciation of ₦155.77 for the Naira. Consequently, the gap between the parallel market rate and NAFEM rate narrowed to ₦45.35 per dollar from ₦326.12 the previous week.

Additionally, the Central Bank of Nigeria (CBN) has raised the exchange rate for cargo clearance at seaports and airports from ₦1,600.32 to ₦1,618.73. This adjustment is the highest rate since March 2024 and comes amid a 6.43% depreciation of the Naira in July. Importers are expected to face increased costs and inflationary pressures due to this rate hike.

Despite the CBN’s efforts to stabilize the Naira through foreign exchange sales, challenges persist. The rise in the exchange rate to ₦1,618.73 from ₦1,600.32 is seen as exacerbating the cost of clearing containers at ports. Clearing agent Oladimeji Majekodunmi has voiced concerns about the potential increase in port clearing costs due to this adjustment.

For the latest updates and juicy gossip, dive into the Bushradiogist platform by clicking this link: Bushradio. For advert placement only, shoot a WhatsApp message to 0807 580 6790.