By Bayo Olupohunda,Dave Ibemere
Copyright legit
The Nigerian closed the week in a strong note in the of the Nigerian Foreign Exchange Market (NFEM)CBN data showed that the naira rose in the official market by N10 on Friday, while in the back market by N3There were also changes in the exchange rates for the British pound and the euro in the official and black market
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Naira strengthened against the United States Dollar in the official Nigerian Foreign Exchange Market (NFEM) on Friday, September 10.
Data from CBN showed that on Friday, the naira closed at N1,489.49/$1 exchange rate against the US dollar.
The rate represents a gain of N10.15, or 0.68%, marked an improvement from Thursday’s rate of N1,499.64/$1.
Naira vs pound euro
It was the same outcome for the naira against other currencies as it recorded gains against major counterparts in the official window.
CBN reports that naira appreciated by N29.78 against the Pound Sterling to settle at N2,006.28/£1, compared with Thursday’s closing rate of N2,036.06/£1.
Similarly, it gained N18.56 against the Euro to finish at N1,747.98/€1, stronger than the previous day’s N1,766.54/€1.
Naira vs dollar in black market
It was a good performance for the naira in the parallel market also known as the black exchange rate market.
The naira gained marginally by N2 to close the week strong according to information from Bureau de Change traders.
Abudullahi a trader told Legit.ng:
“The dollar buying rate is N1,510, while the selling rate is N1,522. This is an improvement from N1,515 from N1,525 previous rate.
“The euro sells at N1,785, and we buy at N1,770. The British pound sterling is selling at N2,085, with a buying rate of N2,065.”
Latest official exchange rates
CFA: N2.70Yuan/Renminbi: N209.04Danish Krona: N234.17Euro: N1747.98Yen: N10.05Riyal: N396.72South African Rand: N85.61Swiss Franc: N1870.63Pounds Sterling: N2006.28US Dollar: N1487.90
Why the naira appreciated
The latest movement has been attributed the to rising dollar supply after a recent liquidity squeeze that had pressured the currency.
Foreign exchange inflows from remittances, export earnings, and increased participation by authorised dealers contributed to the improved outlook.
Supporting the local unit further, Nigeria’s gross foreign exchange reserves rose for the eleventh consecutive week, climbing to $41.997 billion.
MPC members share opinion on new naira exchange rates
Earlier, Legit.ng reported that Members of the Central Bank of Nigeria’s Monetary Policy Committee (MPC) said the naira’s recent stability reflects improved confidence and reforms in the foreign exchange market.
They cited the drop in inflation, exchange rate stability, and hopes to consolidate these gains as their reasons for the decision, while warning that inflationary pressures still pose risks.
They linked the trend to stronger FX turnover, rising oil earnings, non-oil export inflows and diaspora remittances.
Source: Legit.ng
