Naira gains over N200 against dollar in 5 days as expert predicts full recovery in 2024

The naira has strengthened against the US dollar, rallying in official and parallel markets for five days.

The Nigerian currency, which plummeted to over N900 per dollar on Thursday, December 14, 2023, has maintained a steady recovery against the US greenback, rallying to N844.85 per dollar as of Tuesday, December 19, 2023, from N888.35 it traded the day before.

The naira appreciates by over 5% against the dollar

The naira has appreciated by 5.15% in the last five days, signaling that the reforms of the CBN might be paying off.

Data from NAFEM, the official Forex market, shows that the local currency gained about N45.5 against the dollar compared to the previous figure of N888.53 to a dollar traded on Monday, December 18, 2023.

According to reports, the Nigerian currency hit an intraday high of N1,189 to a dollar and an intraday low of N720 to a dollar, representing a gap of N469.12.

Forex turnover at NAFEM stood at $111.76 million, representing an 18.76% decline compared to the previous day.

The naira remains strong in the parallel market against the dollar The naira appreciated marginally in the parallel market, trading N1,240 to a dollar, representing a 0.40% recovery.

The local currency traded at N1,197.60 to a dollar in the peer-to-peer market.

This follows the prediction by the Managing Director/CEO of Financial Directives Company Limited, Bismarck Rewane that the exchange rate is expected to remain volatile in 2023 following the shortage of Forex supplies.

Legit.ng reported that The Economist said that the dollar scarcity means that speculative buying will continue but that the local currency will fully recover in 2024.

Banker and financial expert, Ikechukwu Uche expressed surprise at the recovery of the local currency.

He said during a telephone call with Legit.ng that the naira might finish the year stronger to set the pace for a robust FX rate in 2024.

He said: "What we are seeing is that the local currency is having some respite from Christmas shoppers and importers who flooded the markets looking for exchange rates. If you recall, between October and November this year, the naira took a major hit because of the enormous pressure exerted on it by foreign currency seekers who wish to import products into the country"