No More N1K/$: Naira’s New Exchange Rates to Dollar Showcase CBN’s Solution Working

Market experts predict that the Naira’s strong performance will persist in the upcoming days

With over a decade spent covering Business and Economy, Dave Ibemere brings significant expertise to the topic.

The Nigerian currency started off November 2023 on a positive note against the US dollar, across all foreign exchange markets. 

Naira concluded at N776.14/$ on November 3, 

At the official FX window known as the Nigerian Foreign Exchange Market (NAFEM), the Naira closed at N776.14/$ on Friday, November 3, 2023.

This represents 2.2% or N17.14 increase in the value of the Naira against the dollar compared to the closing rate of N793.28/$1 on Thursday, November 2, 2023.

Data from FMDQ securities showed that the Naira improved despite a drop in FX turnover to $98.82 million, lower than the $136.11 million achieved the previous day.

The good performance of the Naira follows the news that the Central Bank of Nigeria (CBN) had begun to clear some of its foreign exchange backlogs.

Citibank, Stanbic IBTC, and Standard Chartered are some international banks that have received payments.

Naira to dollar at the unofficial markets

This development also helped the Naira in the black market and the Peer-to-peer segment, which is mainly used by fintechs.

Checks by WOTHAPPEN show that in the P2P segment, the Naira strengthened by 8.4 per cent to N892 against the US dollar on Friday.

While in the black market, the Naira appreciated by N160 to close at N940/$1 on Friday, compared to the previous day’s value of N1,140/$.

Similarly, CBN data showed that the Naira improved against the Pound Sterling by N16.99 to settle at N966.43/£1, improving from Thursday’s rate of N983.42/£1.

It was also good news for the Naira against the Euro as it gained N19.06 to finish at N839.39/€1, compared to N858.45/€1.

Expert speaks on the impact.

Reacting to the recent development of Naira, Kelvin Emmanuel, the CEO of Diaryhills and financial expert, said that stability will attract foreign investors back into Nigeria.

“Going forward, I believe the CBN needs to amend the Foreign Exchange Act and reduce the strict control over the flow of FX to primary dealers, such as banks in Nigeria. This would open the market to include not only remittance companies but also other players.

“This change would mean that money wouldn’t only flow through banks but also through all licensed International Money Transfer Operators (IMTOs) and other entities regulated by the CBN. This would promote fluidity in the movement of forex, especially in the case of remittances.”