The Naira experienced a setback on the Nigerian Autonomous Foreign Exchange Market (NAFEM) after a brief period of gains. According to data obtained from FMDQ securities, the Naira closed at N1,571.31/$1 against the US dollar on Thursday, February 22, 2024. This marks a 1.9% depreciation compared to its previous rate of N1,542.58/$1 on Wednesday, February 23, 2024.
Despite an 11.7% improvement in foreign exchange (FX) supply, with an increase of $20.11 million to $192.25 million from the previous day’s $172.14 million, the Naira struggled to maintain its momentum. However, there was some positive movement against other major currencies. Against the Pound Sterling, the Naira appreciated by N142.83 to settle at N1,880.81/£1, and against the Euro, it strengthened by N77.24 to reach N1,609.89/€1.
In unofficial markets, the Naira’s performance against the US dollar was mixed. In the Peer-to-Peer (P2P) section, predominantly used by cryptocurrency firms and fintechs, the Naira gained N23 against the US dollar, trading at N1,737/$1. Conversely, in the parallel market, the Naira depreciated by N10 against the dollar, quoting N1,895/$1, compared to the previous day’s value of N1,885/$1.
The recent adjustments in foreign exchange rates by the Central Bank of Nigeria for clearing imported goods at Nigerian ports have raised concerns among stakeholders. Former Vice Presidential candidate, Peter Obi, expressed worries about the potential adverse effects on businesses and urged the government to take proactive measures to support the Naira’s recovery against the US dollar.
As the Naira’s performance remains subject to market dynamics and regulatory interventions, stakeholders closely monitor developments amid efforts to stabilize the currency and ensure a conducive environment for economic activities.
