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Business News of Wednesday, 5 January 2022


Naira bounces back after record fall

Naira gained, against the U.S. dollar Naira gained, against the U.S. dollar

Naira gained on Tuesday, January 4, against the U.S. dollar on Tuesday, January 4, after falling to an all-time low at the official market on the last business day of 2021.

The currency plunged to N435 on Thursday and Friday as the Central Bank of Nigeria (CBN) adjusted the exchange rate on its website to N413.49 to a dollar. Before the fall, naira for months had traded at between N410 and N415 to a dollar.

The currency closed at N422.67 to the dollar Tuesday, January 4, which implies a N12.33 or 3.0 per cent appreciation, according to data published by FMDQ, where forex is officially traded.

It opened trading at N426.25 per $1, reached an intraday high of N405.00 and a low of N443.50 before closing at N422.67 on Tuesday, January 4, first business day of the year.

Foreign exchange supply, however, fell by 27.41 per cent, with $109.07 million recorded at the close of trade on Tuesday, January 4, against the $150.26 million posted in the previous session on Friday last week.

At the black market in Uyo, dealers exchanged naira with the greenback at N561.00 and sold at N565.00, while dealers in Abuja exchanged naira at N566.00 and sold at N570.00.