Naira Sustains Slow Recovery, As Dollar Goes For N772

The naira appreciated on Thursday against the dollar in the black market, as the exchange rate between both currencies went down by 0.39 per cent.

This means that the rate to exchange the United States dollar fell by N3, to sell at N772/$1, below the rate offered by Bureau De Change operators in the previous sessions.

Prime Business Africa had reported that the exchange rate between the naira and the American dollar had been fluctuating in response to the change in Nigeria’s currency look – the naira reissue.

Dollar rate projected to rise on new naira

Recall that the Central Bank of Nigeria (CBN) had disclosed plans to redesign the naira and release it on December 15, but had to unveil the new naira notes on Wednesday, three weeks before the stipulated date. The unveiling was done by  President Muhammadu Buhari.

The former deputy governor of the central bank, Kingsley Moghalu, had stated that the change will affect dollar rate, weakening the naira further. 

“Regarding the impact of the currency redesign on value of the naira, I and many others foresaw this. But the problem with the value of the naira is more fundamental. Even without this currency redesign, I predicted many months ago that the naira hit 1000 naira to $1 by the end of this year just based on economic fundamentals. 

“The redesign is a temporary operation, so its own specific impact of naira value will be temporary. We will then return to the real issues about naira value. That requires a complete overhaul of economic thinking & management.” 

Meanwhile, the dollar also depreciated in the official market on Thursday, with the naira gaining N1, representing 0.22 per cent growth in value. 

Traders had exchanged both currencies at the rate of N455/$1, in contrast to the N446/$1 reported in the official foreign exchange market on Wednesday. 

They traded forex worth $145.89 million on November 24, same volume recorded during the previous day in the investors and exporters window.