Naira appreciates against US dollar in official black markets again

Naira's exchange rate once again improved against the US dollar in official and unofficial foreign exchange markets.

Data from FMDQ securities shows that in the official market, also known as the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Nigerian currency rate closed at N1602.75/$.

Friday's rate represents a 0.36% or N5.88 appreciation when compared to Thursday, March 14, exchange rate of N1,608.63/$.

This happened as the value of foreign exchange (FX) transactions went down to $137.43 million from $243.65 million recorded in the previous day.

Data from the CBN shows that the naira is exchanged at N2,066.33/£1 against the British pound sterling, while against the Euro, the Nigerian currency settles at N1,766.62/€1.

In the unofficial market known as the parallel or black market, the Naira also appreciated against the dolla.

Naira to unofficial markets

A trader, who gave his name as Abdullahi, told Legit.ng that he sold a dollar for N1,610 on Saturday, March 16, 2024, compared to N1,615 the previous day. When he noted that he buys a dollar at N1,589 from N1,591.

"The exchange rate is still high, and it will take time for it to come down below N1,500 as there are not enough dollars to meet the level of demand in the forex markets."

US bank predicts naira will bounce back

Legit.ng earlier reported that US-based investment bank Goldman Sachs has predicted a new exchange rate for the naira against the dollar.

Goldman Sachs said the naira is expected to rebound and close the year at N1,200 per dollar at the official market. The Nigerian currency currently exchanges in the official and black markets above N1,600 against the US dollar.