Naira increases in value by over N200 against US Dollar, traders sells below N1,000

Naira and Dollar notes

The value of the Naira improved against the United States dollar at both the official and black markets to end the previous week strong.

Data obtained from FMDQ securities showed that the Naira recorded appreciated to N889.86/$1 on Friday, December 15, 2023.

This is a 1.3 per cent or N11.55 increase in value against the US dollar compared to Thursday's rate of N901.41/$1.

It is also a significant improvement of 23.51% or N209.19 from the all-time official low of N1,099.05/$ it fell to last Friday, December 8.

The improvement of the Naira was thanks to the low demand for foreign exchange (FX) in the official market.

Data shows that the turnover for the trading session depreciated by 71.70 per cent or $105.54 million to $41.66 million from the $147.20 million quoted on Thursday.

Naira to dollar at unofficial market

Similarly, the Naira improved against the dollar in the two unofficial forex markets- Peer-to-Peer (P2P) and the black market.

In the P2P arm of the FX market, Naira gained N3 to close at N1,207/$1 compared to the N1,210/$s transacted in the preceding trading session.

Similarly, the Nigerian currency improved its value against the dollar in the parallel market on Friday, December 15, 20,23, by N15 to quote at N1,235/$1, in contrast to the previous day's value of N1,250/$1.

Naira vs Euro and Pounds

It was not a different story for the Naira in the spot market against the Pound Sterling and the Euro.

Data from CBN shows that Naira lost N11.71 of its value on Friday against the British Pound Sterling to close at N1,096.23/£1 compared with the N1,107.94/£1 it traded a day earlier, and against the Euro, it gained N11.59 to settle at N941.47/€1 versus the previous day's exchange rate of N953.06/€1.

Economists set new exchange rate

Earlier, Legit.ng reported that the Economist Intelligence Unit (EIU), a research and analysis firm, predicted that the Naira would close in 2023 with an exchange rate of N848/$ in the official market.

The EIU also said by the end of the following year (2024), the Naira would be exchanged at N861.5 for a US dollar. Similarly, the EIU predicted that the pressure on the Naira would ease in 2024 without CBN implementing harsh measures.