Naira emerges ‘world’s best-performing currency’ – Goldman Sachs

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…Forecasts further gains Nigeria’s currency, the Naira, has emerged as the world’s best-performing currency this month, according to a Goldman Sachs Group Inc. economist, with a potential for further gains if current policies are maintained. The Naira has appreciated 12% against the dollar in April, building on a 1% increase in March. This recovery follows a period of significant depreciation, where the currency lost 71% of its value due to two devaluations since June, after the Government relaxed currency controls. The recent rally has brought the Naira to 1,230 per…

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Naira sells below 1,280/$ at official, parallel markets

The nation’s currency, Naira began the new month on a bullish note, appreciating to N1,278.58 against the United States dollar from N1,309.39 per dollar recorded last week Thursday. This indicates an increase of N30.81 at the close of trading activity. According to data from FMDQ Securities, the indicative exchange rate for the Nigerian Autonomous Foreign Exchange Market (AFEM), closing below the N1,300 ceiling marks the first instance since January 26 of this year. Recall that the Naira depreciated to as low as N1,615/$1 on March 13, 2024. Since the introduction…

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US Dollar falls to N1,280 on black market on CBN policies

The naira has continued to appreciate as the US dollar is currently selling at N1,280 on the parallel market, following the recent foreign exchange (FX) policy measures of the Central Bank of Nigeria, (CBN). With the current rate, the Naira has gained 2.34 percent of its value against the dollar in less than one day, from N1,310 the closing rate for Wednesday. When compared to the level on February 20, 2024, the naira has gained 42.58 percent of its value against the dollar from the lowest of N1,825/$ on the…

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Naira rebounds, exchanges N1, 382/dollar

​The nation’s currency, Naira, is making a steady and sustained gain against the dollar in the last one week, closing at N1, 382 to a dollar at the official market on Friday. The Naira gain came a day after the local currency recorded major gains at both the official and parallel foreign exchange markets. It closed at the black market at N1, 400/dollar on Wednesday. The summary of the FX trading auction revealed that naira appreciated by 1.3 percent following increased dollar supply at the Nigerian Autonomous Foreign Exchange Market,…

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Foreign investors hit brakes on Nigeria over volatile naira

Foreign investors are holding off on new investments into Nigeria until the its currency, the Naira finds some stability. According to a source familiar with the matter, “Foreign investors that thought the peak of the exchange rate would be N1,550/$ and came in have now picked mark-to-market losses on the currency. “They are touching their stop losses and are reversing their inflows. And we don’t have the liquidity to support that”. A fresh inflow of around $700 million was expected to come but that has now been suspended as investors…

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Naira to slump further to N2, 081/$1 in official market – IMF

The International Monetary Fund (IMF) has projected that the nation’s currency, the Naira, may further depreciate by about 35% to the dollar this year, which according to it, could lead to inflation rate peaking at 44% before the monetary policy tightening could bring the situation under control. The Bretton Woods institution, which disclosed this in its February ‘2024 Post–Financing Assessment and Staff Report‘,  noted that Nigeria’s monetary policy is currently insufficiently tightened to bring inflation below 20%, while pressures on the Naira persist. The report said that amid the absence…

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2024: ‘Naira will record worst performance in 25yrs’ – Bloomberg  

Bloomberg, a US-based media organisation, has predicted that the naira will decline further in 2024. According to the publication, yesterday, the naira is poised for its worst year since the return to democracy in 1999 adding that analysts are predicting further depreciation in 2024. The report said naira fell 55% this year to N1,043 per dollar at the official market on Thursday. The decline, Bloomberg said, made the naira the third worst-performing currency in the world behind the Lebanese pound and the Argentine peso — among 151 currencies tracked by…

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Naira now N980/$ at parallel market- ABCON

…Cites dollar liquidity President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, has said the Nigerian currency, the Naira, continued its appreciation streak against the dollar, strengthening to N980/$ in the parallel market on Friday. Earlier in the day, the Naira had appreciated to N1, 040 against the dollar at the parallel section of the foreign exchange market. According to him, the currency rebound is the manifestation of measures of dollar liquidity injection and naira mopping through the instrumentality of interest rate hikes. He said,…

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Forex: Naira stabilises at N775 per dollar, as supply rise

The Naira has stabilised, at N775 per dollar, as demand pressure has waned amid increased supply of the greenback at the parallel market, also known as the black market. For the past three days, the dollar was quoted at N775/$1 at the unofficial market, after depreciating to close to N1, 000/$1 (890) in the early week of November 2022. The pressure on Naira eased on Wednesday on the back of dollar supply, after the Central Bank of Nigeria (CBN) unveiled the newly redesigned banknotes. According to analysts, prior to the unveiling…

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Bank of America forecasts Naira official rate falling to N520 after 2023 Polls

Nigeria’s local currency unit is set to weaken further next year as its current exchange rate to the dollar is well above fair value, according to Bank of America, (BofA). Three indicators – the widely-used black-market rate; the Central Bank of Nigeria (CBN)’s real effective exchange rate, and “our own currency fair-value analysis” – shows the naira is 20% overvalued, it stated, in a note to clients yesterday. “We see scope for it to weaken by an equivalent amount over the next six-nine months, taking it to as high as…

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