Naira gains, dollar dips as CBN commences new deal with currency dealers

• On Tuesday, August 6, the value of the Nigerian naira increased against the US dollar, closing at N1,601/$
• On Monday, August 5, 2024, the Nigerian Autonomous Foreign Exchange Market (NAFEX) ended with the naira at N1,607.15/$
• Nigeria's central bank is selling dollars at a retail auction starting Wednesday in an effort to avert a foreign exchange crisis

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Nigerian naira gained slightly on Tuesday, August 6 to close at N1,601 against the dollar as shown by official source.

The naira continued to appreciate on Tuesday after the previous day's trade. Photo Credit: CBN
Source: UGC

According to data obtained from FMDQ, this is a 0.38% appreciation of the local currency compared to the dollar.

The gains indicate a continued appreciation from the previous day’s trade. Legit.ng had reported that the naira, has started the new week positively against the US dollar at the official foreign exchange market.

The naira closed at N1,607.15/$ at the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, August 5, 2024.

Monday's exchange rate represents a 0.61% or N9.93 appreciation compared to the N1,617.08/$1 recorded on Friday, August.

CBN steps in

Nigeria's central bank has commenced selling dollars at a retail auction today to relieve pressure on the local currency and prevent a foreign exchange meltdown from today.

The sale comes in response to mounting unfulfilled foreign exchange demand, which has been driving up demand pressure in the foreign exchange market and negatively affecting the naira's exchange rate, according to a circular from the Central Bank of Nigeria, which is based in Abuja, to lenders.

It demanded that approved dealer banks submit a list of every FX demand that end customers still had outstanding.

CBN Crashes Dollar For Importers

Legit.ng reported that the Central Bank of Nigeria (CBN) has lowered the Nigeria Customs Service foreign exchange rates for cargo clearance in Nigeria’s ports.

The apex bank pegged the Customs exchange rate at N1,600 per dollar from the N1,610 it reported on Wednesday, July 31, 2024.

The development follows the consistent gain of the naira against the US dollar in the official market.

Source: Legit.ng