The Nigerian currency, the naira, recorded another poor performance against the US dollar in the foreign exchange markets.

According to FMDQ securities data, the naira depreciated to N1,611.34 on Tuesday, September 3, 2024, in the Nigerian Autonomous Foreign Exchange Market (NAFEX).

However, CBN data shows that the naira improved against the British pound sterling, exchanging at N2,095.28/£1, up from the previous day's rate of N2,100.44/£1.

There was also an improvement for the naira against the euro, with the exchange rate closing at N1,762/€1, compared to the previous rate of N1,769.28/€1.

In the black market, traders sold the dollar at N1,630/$1, the same rate as Monday.

Dangote offers hope

Aliko Dangote, CEO of Dangote Refineries, has revealed that the arrangement of the Federal Executive Council (FEC) to supply the refinery crude oil in local currency will slash Nigeria’s foreign exchange demand by at least 40% and help ease pressure on naira.

He said: “I want to personally also thank Mr. President for creating this idea of naira for crude and also naira for the product.

"This will give a lot of stability for the naira because you remove 40% of the demand for the dollars in the market. That’s not only it.

“Today’s discussion is only to thank God almighty for bringing us into this period of now producing gasoline. I know that a lot of people think we won’t be able to deliver. But we’ve been able to deliver.”

CBN hopes for new naira-to-dollar exchange rate

Earlier, Legit.ng reported that the CBN asked Nigerians if they were optimistic that the value of the Nigerian currency would improve in the coming months.

The apex bank said increasing domestic crude oil production and exports would enhance naira's value.

The CBN recently conducted another round of forex sales and reiterated its determination to tackle depreciation of the naira.