Naira Rebounds Strongly Against US Dollar

Naira Rebounds Strongly Against US Dollar

The Nigerian currency, the naira, experienced an appreciation against the United States Dollar in the foreign exchange market, coinciding with an increase in FX transaction turnover.

According to data from the FMDQ, the naira appreciated by ₦2.33, reaching ₦1594.27 per dollar on Tuesday, compared to ₦1596.60 on Monday.

In the black market, the naira remained unchanged at ₦1620 per dollar on Tuesday, consistent with the previous day’s rate.

This development occurred as foreign exchange transaction turnover rose to $156.94 million on Tuesday, up from $102.93 million on Monday.

Additionally, the Central Bank of Nigeria (CBN) raised the Standing Lending Facility rate to 31.75 per cent on Monday to enhance stability within the financial sector.

Meanwhile, the Central Bank of Nigeria (CBN) recently announced that it sold foreign exchange (FX) to banks worth $876.26 million at ₦1,495 per dollar.

According to a statement dated August 7, signed by Omolara Omotunde Duke, CBN’s director of the financial markets department, the apex bank said the auction aimed to reduce demand pressure in the FX market and promote price discovery.

The CBN said the transaction was conducted through a retail Dutch auction system (rDAS).

According to the apex bank, while bids valued at $876.26 million from 26 banks qualified, bids from six banks were disqualified.

The CBN said four banks missed the deadline and two did not provide bids in their submitted templates.