Naira Appreciates To ₦1,600 As Dollar Supply Rises

The Nigerian naira appreciated to ₦1,600 per dollar at the official market on Friday, 25 October.

This shows a marginal appreciation at the official segment of the foreign exchange market when compared to Thursday’s closing rate of ₦1,601.20 per dollar, according to the Nigeria Autonomous Foreign Exchange Market (NAFEM) data published on the FMDQ Securities and Exchange platform.

This means the naira only gained ₦1.20 against the greenback at the official market, representing 0.07 per cent.

This was the second time the naira appreciated at the official market during the week under review.

After ending the previous week positively at ₦1,600.78/$, the naira weakened on Monday, 21 October after closing trading at ₦1,603.16 per dollar. It further depreciated to ₦1,653.02/$ on Tuesday, 22 October, and reached a peak of ₦1,654.09/$ on Wednesday, 23 October before strengthening to ₦1,601.20 on Thursday, 24 October.

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Meanwhile, at the black market, the naira lost N15 to close at N1,740 per dollar after starting the week with N1,725.

The FMDQ data show that dollar supply (FX transaction turnover) increased by 23.35 per cent from $230.99 million on Thursday to $284.93 million on Friday.

On a week-on-week analysis, the FX transaction turnover dropped by $74.29 million (20.68 per cent) from $359.22 million on Friday, 18 October to $284.93 million on Friday, 25 October.