Naira Records Three-Day Appreciation Streak Against Dollar

Published on August 7, 2024

By Kingnaafrika.

The Nigerian Naira has achieved a remarkable three-day appreciation streak against the US dollar, signaling positive developments in the foreign exchange market. Let’s delve into the details:

The Central Bank of Nigeria’s latest FX Retail Dutch Auction System played a pivotal role in this streak.

FMDQ data revealed that the Naira strengthened further to N1,596.52 per dollar on Wednesday, marking a gain of 4.48% from the previous day’s rate of N1,601¹.

This upward trend reflects increased confidence in the Naira’s stability.

Despite the official market gains, the Naira weakened on the black market, trading at N1,620 per dollar on Wednesday. This was a decline from the N1,607 rate exchanged the day before.

A comparative analysis shows that the Naira gained N4.48 at the official market but lost N13 in the black market.

The disparity highlights the ongoing challenges faced by the Naira in informal trading circles

To curb the surge in dollar demand, the Central Bank of Nigeria recently sold $876.26 million at N1,495 per dollar through its retail Dutch Auction System.

This intervention aims to maintain stability and mitigate currency fluctuations.

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Disclaimer: The content provided here is based on publicly available information and does not constitute financial advice. Always consult professional sources for specific investment decisions.