Tuesday, February 27, 2024
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Naira rebounds at official market



After several days of volatility, the naira rebounded at the official I&E Window on Tuesday, closing at N878.61/$1 against the N925.34/$1 it closed on Monday.

The latest indicates a major improvement in the value of the local currency which had earlier closed at over 1000/dollar at the official window over a week ago.

The local currency has been facing pressure in recent days amid lingering foreign exchange shortages. Some analysts and stakeholders have however linked the latest pressure on the local currency to the alleged hoarding of the greenback by some bank customers.

At the parallel market on Tuesday, the local closed flat at 1,365/dollar, almost the same level it closed on Monday.

The development represents a slight halt in the steady fall of the local currency at the black market. It had recently slid from N1,200/dollar to over N1,300/dollar about a week ago.

A Bureau De change operator in Zone 4, Abuja, who simply identified himself as Suraju Sani, said the dollar sold at N1,350 to the naira in the capital city.

He said, “Dollar is now N1,350. That’s the highest I can buy and I can’t go beyond that amount. I sell between N1,360 and N1,365”

Another operator, Ibrahim Yahu, however, stated that he could only sell the dollar at the rate of N1,360.

According to Aboki FX, the naira maintained its stability for the second day after it closed for N1365/$1 on Monday.

However, according to data from the FMDQ Securities Exchange, an official platform that oversees foreign exchange trading, the naira recovered by N46.73 against the United States dollar.

The naira recovered from N925.34/$1 that it closed on Monday, January 23, 2024, to appreciate to N878.61/$1, on Tuesday, January, 23rd, 2024

However, it could be recalled that the naira stabilised after a Central Bank of Nigeria report showed  Nigerians spent a whopping $1.58bn on health tourism, foreign education, and other personal matters in six months.

According to data from the apex bank’s Balance of Payment compilation spanning the first six months of 2023 showed that Nigerians spent $245.68m on overseas health-related issues, $896.09m on foreign education, and $434.63m on other personal foreign needs.



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