Official market sees naira exchange rate appreciate to N801.10

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Naira weakens despite three-month low for U.S. dollar index
Naira weakens despite three-month low for U.S. dollar index

On October 25, 2023, the Nigerian naira showcased a robust performance against the US dollar, closing at NGN801.10/$1.

This represents a notable 5.83% uptick from the previous day’s rate, which stood at N847.77/$1.

Throughout the trading day, the currency displayed its resilience with an intraday high of N891/$1 and an intraday low of N730/$1, resulting in a range of N161/$1.

Data sourced from the official NAFEM window revealed a substantial forex turnover of $100.18 million for the day, marking a significant 13.71% escalation compared to the prior day’s figures.

Simultaneously, Nigeria’s external reserves experienced a minor increase, reaching $33.295 billion.

This marks a noteworthy achievement, maintaining a seven-day streak of gains, thereby ensuring its consistency above the $33 billion threshold since July 2023.

However, it’s worth noting that on the unofficial black market, the exchange rate remained weaker, with quotes plunging as low as N1310/$1. Peer-to-peer traders, on the other hand, quoted around N1293.75/$1.

As of Thursday morning, crypto traders seemed to capitalize on the exchange rate fluctuations, quoting the dollar as high as N1295.22/$1.

President Bola Ahmed Tinubu recently conveyed his commitment to enhance foreign exchange liquidity.

This assurance was made in a statement dated October 23, signed by Ajuri Ngelale, during the Nigerian Economic Summit.

In the statement, President Tinubu emphasized his administration’s resolve to address current economic challenges, assuring the business community that plans were in progress to bolster foreign exchange liquidity.

He further pledged to honor all legitimate contracts concerning the nation’s foreign exchange obligations.

Addressing attendees at the 29th Nigerian Economic Summit (NES) in Abuja, President Tinubu expressed confidence in working collaboratively with the private sector, with the ambitious goal of financing the Three Trillion Dollar National Infrastructure Stock within a decade, as opposed to a much lengthier timeframe.