The Naira appreciated against the US Dollar at both the official and black market, easing worries about the local currency on Friday, October 25

The Naira pulled a marginal gain of 0.07 percent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) as the local currency extended its position from the previous session.

Naira gained N1.20 to close the session at N1,600.00/$1 at the official window, according to data obtained from the FMDQ Securities Exchange.

Turnover published on the FMDQ Group website stood at $284.93 million indicating that the session’s turnover slid by 23.4 percent to $230.99 million published the previous day.

This happened as the latest data from the Central Bank of Nigeria (CBN) revealed that the gross balance in the external reserves climbed to $39.20 billion this week.

According to analysts, this is the highest level seen in the last 28 months as historic records showed that Nigeria’s gross external reserves was last seen at $39.219 billion in July 2022.

In the black market, the Naira gained N7.99 against the greenback to close at N1,698.62 to the US Dollar compared to N1,706.61/$1 it closed on Wednesday.

Equally, the domestic currency also witnessed gains against the British currency and the Euro in the week’s final session.

On the Pound Sterling, the local currency made an appreciation of N7.77 to wrap the session at N2,132.29/£1 from N2,140/£1 that it sold at the previous session and against the Euro, the Nigerian currency closed at N1,768.18/€1 versus N1,780.16/€1, indicating an N11.98 appreciation.

The local currency also rose in value against the British currency in the black market as it rose by N8.02 to sell at N2,204.15/£1 compared with the preceding session’s N2,212.17/£1 and followed the same pattern against the Euro as it appreciated N3.74 to quote at N1,840.34/€1 versus the previous day’s rate of N1,844.08/€1.

The local currency halted recent drops as it gained N2.77 to close at N1,235.06 per Canadian Dollar, compared to Thursday’s N1,237.83 per CAD.

The Naira appreciated 3.2 percent to N1,601.20 against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEX).

The domestic currency gained N52.89 on the greenback versus N1,654.09/$1, which it closed in the previous session on Wednesday.

Data showed a rise in supply as the turnover published on the FMDQ Group website stood at $230.99 million indicating that the session’s turnover jumped by 69 percent, indicating a rise of $94.31 million compared to $136.68 million that was published in the last trading session.

Equally, the Naira strengthened its value against the Pound Sterling in the official market by N7.16 to sell at N2,140.06/£1 compared with the preceding session’s N2,147.22/£1.

It followed the same route against the Euro as it appreciated N9.77 to quote at N1,780.16/€1 versus midweek’s rate of N1,789.93/€1.

Meanwhile, in the black market, the Naira lost 18 Kobo or 0.01 percent against the greenback to close at N1,706.61 to the US Dollar compared to N1,706.43/$1 it closed on Wednesday.

However, the local currency rose in value against the British currency in the black market as it rose by 20 Kobo to sell at N2,212.17/£1 compared with the preceding session’s N2,212.37/£1 and followed the same pattern against the Euro as it appreciated 71 Kobo to quote at N1,844.08/€1 versus the previous day’s rate of N1,844.79/€1.

Meanwhile, the local currency further depreciated for the fourth straight day as it lost N4.82 to close at N1,237.83 per Canadian Dollar, compared to Wednesday’s N1,233.01 per CAD.

The development contradicts an analysis by the International Monetary Fund (IMF) which reported that the Nigerian Naira is stabilising due to interest rate hikes and the Central Bank of Nigeria’s (CBN) clearance of foreign exchange backlogs.

“In Nigeria, rate hikes and clearing overdue domestic central bank foreign exchange obligations have helped the naira show more signs of stability,” stated the IMF in its global financial stability report.

The Central Bank of Nigeria (CBN) has said there is no deadline for the circulation of old naira notes as widely reported in some media on Thursday.

In a press release obtained by Investors King, the apex bank said old naira notes, N200, N500 and N1,000 shall be legal tender on December 31, 2024.

The CBN said “The attention of the Central Bank of Nigeria has been drawn to discussions at different fora suggesting that the old series of the N200, N500, and N1,000 banknotes shall cease to be legal tender on December 31, 2024.

“We wish to state categorically that such claims are false and calculated to disrupt the country’s payment system.”

“For the avoidance of doubt, the order of the Supreme Court of Nigeria on Wednesday, November 29, 2023, granting the prayer of the Attorney-General of the Federation and Minister of Justice to extend the use of old Naira banknotes ad infinitum, subsists,” the statement said.

The CBN in the statement reiterated that both the old and new banknotes must remain in circulation.

It said: “Similarly, the CBN’s directive to all its branches to continue to issue and accept all denominations of Nigerian banknotes, old and re-designed, to and from deposit money banks remains in force.”

It said: “All banknotes issued by the Central Bank of Nigeria will continue to remain legal tender indefinitely.”