How the naira recovered massively in the official and black markets

• The Nigerian currency, the naira, has rebounded after depreciating to the lowest in the official market
• The naira rallied to close at N1,635 on Thursday, November 7, 2024,  from the N1,681 it traded the previous day
• The local currency also rose in the parallel market, closing at N1,720 per dollar from N1,725 per dollar

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

After falling to its lowest On Wednesday, November 6, 2024, the Nigerian currency, the naira, rallied to close at N1,639 on Thursday, November 7, 2024, from the N1,681 it traded the previous day.

The naira’s recovery comes amid the strong resurgence of the US dollar following Donald Trump's election victory.

The naira appreciates in official and black markets amid a stronger dollar Credit: Bloomberg/Contributor
Source: Getty Images

The naira makes a comeback after the lowest fall

The naira plummeted to an all-time low of N1,681 following increased demand for the US dollar in the foreign exchange markets.

According to data from the FMDQ Exchange, willing buyers and willing sellers quoted the dollar at a high of N1,700 and a low of N1,635 per dollar.

The naira rallies in the black market

Similarly, the naira rose to N1,720 per dollar on Thursday, November 7, 2024, in the parallel market from N1,725 it traded earlier in the week.

A black market dealer, Abbas Yishau, disclosed that the demand for the US greenback slowed, leading to the naira’s appreciation.

“We did not get many demands for dollars in the past three days. I don’t know if it is because we received more demands the previous week.”

Yishau disclosed that they expect the CBN to intervene anytime soon and conduct another round of FX sales.

“We hear rumours that the CBN may sell dollars to dealers soon. If that happens, it will help the naira’s value,” he said.

CBN hikes exchange rates for importers

Legit.ng previously reported that the Central Bank of Nigeria (CBN) has adjusted the Nigeria Customs exchange rates to clear goods by air and seaports.

The development follows the US dollar’s rebound against major currencies following the presidential election victory of Donald Trump.

The US dollar rose substantially against several other major currencies as Donald Trump won the presidential election.

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Source: Legit.ng