Naira gains in official market, steadies in black market as pressure mounts

• On the official foreign exchange market, the value of the naira increased in relation to the dollar for the first time since last week
• Data shows that the naira closed at N1,678.93 on Tuesday to a N11.77 increase in the value of the local currency relative to the dollar
• Due to a growing supply deficit and strong demand for the dollar, the Naira faced additional challenges in the unofficial market

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

For the first time since last week, the naira saw an increase in value relative to the dollar on the official foreign currency market.

The Nigerian currency has dropped 70% since the middle of last year. Photo Credit: Anderson Ross
Source: Getty Images

According to FMDQ data, the naira appreciated from N1,690.37 to N1,678.93 per dollar on Monday and N1,678.93 on Tuesday, representing a N11.77 increase in the value of the naira relative to the dollar.

This indicates that the official market has seen an increase in the value of the naira relative to the dollar for the first time since November 13, 2024, when it closed at N1,645.

The naira however held steady at N1,745 to the dollar on the black market on Tuesday, matching Monday's exchange rate.

The turnover of foreign exchange transactions decreased from $296.63 million on Friday of last week to $173.14 million on Monday.

While the US dollar index has demonstrated strength, the Nigerian currency has dropped 70% since the middle of last year.

Analysts said the Naira is likely to face more selling pressure as demand for foreign exchange rises, driven mainly by foreign tuition, fuel imports, Christmas vacations.

The Naira faced more headwinds in the unofficial market amid high demand for the dollar and a widening supply gap.

Naira sinks to new low under Tinubu

Legit.ng reported that the Nigerian currency, the naira, depreciated by 2.31% or N38.12 on Monday, November 18, 2024, in the Nigerian forex market to close at N1,690.37 per dollar, relative to N1,652.25 on Friday, October 15, 2024.

Data from the FMDQ Exchange shows that forex supply in the official market stood at $173.14 million, representing a 42% decline from the $296.63 million on the previous trading day.

Willing buyers and willing sellers quoted the dollar at a high of N1,699 and a low of N1,633 per dollar.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Source: Legit.ng