Naira Recovers N47 of Its Lost Value Against US Dollar in Official Market, Falls in Black Market

• The Nigerian currency recorded a mixed performance against the US dollar in both the official and unofficial markets
• In the black market, the Naira crashed to another low against the US dollar but improved in the official market
• The Naira continues to exchange above N1,500 per Dollar in the official market and nears N2,000 in the black market

Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

The Naira recovered some of its lost value against the US dollar in the official market despite a heavy fall in the unofficial foreign exchange market.

Data from FMDQ Securities shows that at the Nigeria Autonomous Foreign Exchange Market (NAFEM), the Naira closed at N1551.24/$ on Tuesday, February 20, 2023.

This represents a 2.9% or N47.3 appreciation on the Dollar compared to the closing rate of N1,598.54/$1 on Monday, February 19.

However, against the British Pound Sterling and the Euro, the Naira continued its poor performance in the official market.

CBN data shows that the Naira lost N92.60 against the British Pound Sterling on Tuesday to quote N2,023.64/£1 compared with the preceding day’s N1,931.04/£1.

While against the Euro, it declined by N77.24 to settle at N1,729.36/€1 versus Monday’s closing rate of N1,652.12/€1.

Naira to unofficial market

It was a similar story for the Naira on the peer-to-peer (P2P) market and the black market against the US dollar.

Legit.ng observed that the value of the Naira declined against the Dollar in the black market as traders quoted N1,815/$1, in contrast to the preceding day’s value of N1,720/$1.

While in the P2P segment, Naira tumbled by N95 against the US Dollar to sell at N1,802/$1 compared with the N1,707/$1 quoted in the preceding session.

CBN governor plans next move for Naira

Earlier, Legit.ng reported that the CBN is set to introduce a singular foreign currency (FCY) gateway bank.

The apex bank said the move would centralise all correspondent banking activities and facilitate international trade and economic activities.

The CBN also announced a plan to streamline the number of BDC operators in Nigeria, improve the nation’s forex inflows and stabilise the Naira.

Source: Legit.ng