Naira Gains on Dollar at Official Market on Improved Supply, Dips at Black Market

The Naira appreciated against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, October 3, as the local currency sold for N1,659.26/$1.

The domestic currency recorded a 0.6 percent or N9.89 again against the greenback compared to the N1,669.15/$1 it was valued at the previous session on Wednesday.

This occurred as turnover published on the FMDQ Group website stood at $450.39 million indicating that the session’s turnover surged by 155.3 percent, indicating that there was an increase of $273.94 million compared to $176.45 million that was published the day before.

This development indicates that the Central Bank of Nigeria (CBN) may have made fresh interventions in the market after it only sold to Bureau de Change (BDC) operators in recent weeks.

Meanwhile, the domestic currency also witnessed losses against the British Pound Sterling and the Euro in the week’s penultimate session.

On the Pound Sterling, the local currency made a loss of N56.00 to wrap the session at N2,199.65/£1 from N2,143.65/£1 that it sold at the previous session and against the Euro, the Nigerian currency closed at N1,830.89/€1 versus N1,789.71/€1, indicating an N41.18 depreciation.

In the black market, the Naira plunged by N25.75 to close at N1,681.79 per Dollar from N1,656.04 and extended this outcome against the British Pound as it fell by N12.70 to N2,170.93 against N2,158.23.

Trading against the Euro, the local currency dropped N14.80 to N1,859.03 versus N1,844.23

However, it was a positive outcome against the Canadian Dollar as it gained N7.28 to end the penultimate session at N1,212.72 from Wednesday’s N1,220.00.