Nigerian Naira Strengthens Against US Dollar in Foreign Exchange Market

On Monday, March 6, 2023, the Nigerian currency, the Naira, put up a strong performance against the United States dollar in all foreign exchange market segments.

According to data obtained from FMDQ securities, the local currency appreciated by 42 Kobo or 0.09% to trade at N461.33/$1 in the official market, compared to the previous session’s exchange rate of N461.75/$1.

Despite coming under heavy FX demand pressure in the I&E window, the Naira regained its strength, surprising market participants.

The value of forex transactions recorded in the I&E segment surged by 59.85% or $40.44 million to $108.01 million from $67.57 million.

In the parallel market, the Naira gained N4 against the US dollar to quote at N748/$1, as opposed to last Friday’s rate of N752/$1. Similarly, in the peer-to-peer segment, the domestic currency was strengthened against its American pair by N9 to settle at N755/$1, compared with the preceding session’s value of N764/$1.

However, in the interbank segment, data from the CBN showed that the Naira closed flat against the Pound Sterling and the Euro on Monday at N553.24/£1 and N489.27/€1, respectively.

Meanwhile, banks have started partial payment of old Naira notes following a supreme court judgement that extended the validity of old notes to December 31, 2023.

A staff of GTB, who spoke on condition of anonymity, confirmed that the bank paid out N500 and N1,000 to customers on Monday.