Victor EzejaThe Nigerian naira recorded appreciation at the official market on Tuesday, 8 October as the exchange rate dropped to N1,561.76 per dollar. This reflects a 73.39 naira or 4.49 per cent gain when compared to N1,635.15 per dollar recorded at the close of trading on Monday, 7 October. This is according to the Nigeria Autonomous Foreign Exchange Market (NAFEM) data published on the FMDQ Securities and Exchange platform.
The NAFEM data showed that FX transactions in the Importers and Exporters (I&E) window was between N1,650.00/$ and N1,540.00/$.
Join our WhatsApp ChannelAccording to the data on the FMDQ platform, there was an increase in dollar supply from $126.24 million on Monday to $253.68 million on Tuesday, reflecting 100.95 per cent increase.
READ ALSO: Black Market Dollar (USD) To Naira (NGN) Exchange Rate Today, 8th October 2024
The naira is still on the road to recovery. An analysis of the NAFEM data shows that the naira had strengthened to N1540.78/$ on Friday, 27 September before depreciating to a peak of N1669.15/$ on Wednesday, 2nd October, just after the Independence public holiday.
Last week’s trading at the official market closed at N1,631.21/$ but the naira depreciated to N1,635.15/$ on Monday.
Analysts believe that the increase in dollar supply to the FX market influences a drop in the exchange rate and the appreciation of the naira’s value.
Last week, the Central Bank of Nigeria (CBN), had announced that it sold a total of $543.5 million to authorised dealer banks between 6 and 30 September 2024 in a bid to boost liquidity in the foreign exchange market.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
Follow Us