US dollar hits record low in official and black markets
The Nigerian currency, the naira, has seen a positive increase in value against the US dollar in both the official and unofficial foreign exchange markets. The Central Bank of Nigeria (CBN) has reported a notable appreciation in the naira’s value. In the official market, the naira strengthened to N1,599.42 per dollar, showing a 0.22% improvement compared to the previous session’s exchange rate of N1,603.01/$1.
Moreover, the naira also made gains against other major foreign currencies in the official exchange market. It appreciated against the Euro by N1.36, closing at N1,818.53/€1 and depreciated against the British pound by N1.90, closing at N2,130.44/£1. This fluctuation in exchange rates demonstrates the dynamic nature of international currency trading and the impact of market forces on currency values.
In the parallel market, commonly known as the black market, the naira further appreciated against the US dollar. Traders have confirmed that the dollar, which was selling for N1,620 at the beginning of last week, has now fallen to around N1,602/$1. This adjustment indicates a significant decrease in the value of the dollar in the black market, reflecting changing perceptions and demands for different currencies in the economy.
The CBN has expressed confidence in its economic reforms and policies, highlighting the positive trajectory of Nigeria’s economy. Yemi Cardoso, a representative of the Central Bank of Nigeria, emphasized the institution’s commitment to maintaining stability and transparency in the foreign exchange market. The increasing investor confidence, growth in reserves, and macroeconomic stability are all indicators of the country’s economic progress and potential for future growth.
Additionally, the CBN recently made adjustments to the Customs exchange rate used by importers for clearing goods at ports. This change reflects the performance of the naira in the official NAFEX window against the dollar. The slight reduction in the Customs exchange rate aligns with the overall strength of the naira in the foreign exchange markets and demonstrates the CBN’s efforts to adapt to changing economic conditions and market trends.
Overall, the recent appreciation of the naira against the US dollar in both the official and black markets signals positive developments in Nigeria’s economy. The CBN’s commitment to reforms, stability, and transparency in the foreign exchange market, coupled with the country’s increasing investor confidence and growing reserves, bodes well for the future economic outlook of Nigeria.