The Nigerian currency, the naira, has appreciated by 0.54% against the US dollar on Friday, September 1, 2023 at the parallel market segment otherwise called black market. Bureau De Change operators reported buying the greenback at N910 and selling to willing buyers at N915 as demand for forex declined on the first day of the new month.
Naira’s value appreciated caused by decreased dollar demand
This marginal gain recorded by the naira happened because less people were looking to buy the dollars, consequently causing a reduction in demand for them.
One dollar was trading at the rate of N915/$1 on Friday, representing 0.54 per cent (N5) gain compared to N920 traded on Thursday, according to data from the abokifx, an online platform that collates exchange rates at the unregulated market.
In some other street trading areas, dollars traded at N918/$1 as black market operators buy at N910. The naira appreciation was attributed to a moderation in demand for dollars.
“There are dollars in the market. Individuals bring dollars to us and those who need it to travel also come here to buy. We have enough dollars,” said one of the black market operators.
Naira steadied at between N920and N925 at the various street trading areas across the country in the last three days.
On Thursday, naira fell to N762.71 per dollar, losing 3.32 percent value against the dollar as liquidity dropped at the official foreign exchange (FX) market.
The volume of transactions at the Investors’ and Exporters’ (I&E) forex window dropped by 49.58 percent to $85.79 million on Thursday from $170.15 million recorded on Wednesday.
After trading on Thursday, the dollar was quoted at $762.71/$1 as against N738.18 quoted on Wednesday at the official FX market, data from the FMDQ indicated.
FX dealers maintained bids as high as N799.90/$1 on Thursday, stronger than N800/$1 bid on Wednesday. At the lower end they bid at N720/$1, lower than N701/$1 recorded on Wednesday and Tuesday.
Find below official exchange rate of a number of currencies to the Naira from the Website of the CBN.
| Date | Currency | Buying(NGN) | Central(NGN) | Selling(NGN) |
|---|---|---|---|---|
| 8/31/2023 | US DOLLAR | 756.523 | 757.023 | 757.523 |
| 8/31/2023 | POUNDS STERLING | 958.6659 | 959.2995 | 959.9331 |
| 8/31/2023 | EURO | 820.5248 | 821.0671 | 821.6094 |
| 8/31/2023 | SWISS FRANC | 855.0215 | 855.5866 | 856.1517 |
| 8/31/2023 | YEN | 5.1583 | 5.1618 | 5.1652 |
| 8/31/2023 | CFA | 1.3265 | 1.3365 | 1.3465 |
| 8/31/2023 | WAUA | 1077.7789 | 1078.4912 | 1079.2035 |
| 8/31/2023 | RIYAL | 201.6964 | 201.8297 | 201.963 |
| 8/31/2023 | DANISH KRONA | 110.0797 | 110.1525 | 110.2252 |
| 8/31/2023 | SDR | 1006.2512 | 1006.9163 | 1007.5813 |
| Date | Currency | Buying(NGN) | Central(NGN) | Selling(NGN) |
