Traders quote naira for new price as official market sees more dollar supply

• The naira closed at N1,510/dollar on Thursday, almost unchanged from the N1,507/dollar the previous day
• Data shows that dollar supply increased in the official window by N110 million compared to the previous day
• According to the CBN, total foreign exchange inflow in the country has increased in recent times amid several policy reforms

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

The Nigerian naira was stable on Thursday, 27, as it traded at N1,510 against the dollar.

The daily forex turnover increased significantly to $287.21 million. Photo Credit: Liubomyr Vorona
Source: UGC

According to official data from FMDQ securities, the Nigerian Autonomous Foreign Exchange Market (NAFEM), the amount represents a 0.15% decline compared to the closing rate of N1,507.83 on Wednesday, 26.

During trading hours, the local currency was priced as low as N1,431 per dollar, while its high was N1,577 per dollar.

Data showed that the daily forex turnover increased significantly to $287.21 million from the $176.39 million it sold the previous day.

This depicts a S110 million increase in the volume.

More dollar inflows in Nigeria

The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, stated in a Tuesday interview with Bloomberg that the nation registered a $24 billion in total foreign exchange (FX) inflow in the first three months of 2024.

The Nigerian economy received approximately $5.95 billion in funding from the World Bank and Afreximbank in a single month, June 2024.

Another source of inflow is foreign direct investment (FDI), which refers to investments made in domestic firms by foreign corporations through things like factory setup, real estate purchases, and ownership holdings in local businesses. International exchange inflows can also come from grants, remittances, international aid, and portfolio investments.

Cardoso reported that compared to the inflows recorded in the prior quarters, the foreign exchange inflows for the first quarter of 2024 are almost 50% greater.

CBN leaves customs FX rate for cargo clearance unchanged

Legit.ng reported that for the past three weeks, the Central Bank of Nigeria has maintained the same exchange rate for import duties, despite the official FX rate being close to N1,485 per dollar.

Before collapsing on Monday, June 24, 2024, the FX rate had remained stable at N1,474 per dollar for the previous three weeks—the longest it had been since January 2024.

Following the most recent collapse of the value of the Nigerian Naira relative to the US dollar, importers would anticipate a change.

Source: Legit.ng