Naira Increases in Value Across All Foreign Exchange Markets as Demand for Dollar Drops

• The scarcity of the Naira seems to be helping its value against the US dollar across official and unofficial forex exchange markets
• Naira recorded two straight days of appreciation in the official market as dollar demands dropped
• The Central Bank of Nigeria is expected to withdraw the use of old naira notes on Friday, February 10, 2023

The value of Nigerian currency increased against the United States Dollar across all foreign exchange markets on Wednesday, February 8, as cash scarcity continues to disrupt activities across the country.

The foreign exchange (FX) markets include Investors and Exporters (I&E), which is the official window, the black market, and the Peer-2-Peer (P2P) windows, both unofficial.

Data obtained from FMDQ securities, the Investors and Exporters (I&E) window where forex is officially traded, shows that the naira closed at N461.17/$1 on Wednesday, February 8.

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This is a 33 Kobo or 0.07% increase in the value of the Naira compared with the exchange rate of N461.50/$1 on Tuesday, February 7.

The value of the naira increased as demand for dollars in the I&E window dropped by 25.6% or $19.06 million lower.

Data shows that the total value of the transactions on Wednesday, February 8, stood at $55.52 million, 25.6% or $19.06 million lower than the $74.58 million carried out in the preceding session.

The official market’s appreciation of the naira is the second in two days.

Naira value at the unofficial market

On the Peer to Peer market, the naira gained N1 versus its American counterpart on Wednesday, February 8, settling at N760/$1, up from N761/$1 on Tuesday, February 7.

In the black market, the Nigerian currency finished N1 higher than the US dollar, trading at N749/$1, compared to N750/$1 on Tuesday, February 7.

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Naira falls as expert predicts N1000 to one dollar rate

Meanwhile, Legit.ng earlier reported that Naira recorded its first loss in 2023 as the foreign exchange market resumed full activities.

The Nigerian currency drop in value was recorded across official and black market foreign exchange markets.

Naira experienced significant losses in 2022, and experts have shared their predictions for 2023.

Source: Legit.ng