The naira appreciated against the dollar at the official foreign exchange market for the first time since last week.....Read Full Article>>

FMDQ data showed that the naira strengthened to N1,678.93 per dollar on Tuesday from N1,690.37 exchanged on Monday.

This showed that the naira gained N11.77 against the dollar.

DAILY POST reports that this is the first time the naira has appreciated against the dollar at the official market since November 13, 2024, when it closed at N1,645.

Meanwhile, at the black market, the naira remained flat at N1,745 per dollar on Tuesday, the same exchange rate on Monday.

This comes as FX transaction turnover fell to $173.14 million on Monday from $296.63 million recorded on Friday last week, according to FMDQ data.

Dollar- To- Naira Exchange Rate Today After Trump’s Victory....Read Full Article>>

The US dollar soared to unprecedented levels following Donald Trump’ s election as the 47th President of the United States, marking a significant impact on global currency markets. This surge led to a noticeable drop in value for the British pound, euro, and Nigerian naira, which struggled in both official and unofficial markets. The dollar’ s rapid ascent reflects a renewed confidence in the US economy under Trump’ s projected policies, which many believe will foster greater investment returns and economic growth.

Bloomberg reports that the dollar spiked by as much as 1. 7%, marking its highest level since November 2023. This increase represents the dollar’ s strongest rally in four years, fueled by expectations that Trump’ s administration will bring investor- friendly policies. As confidence in the US economy grows, investors are moving their funds into dollars, causing a ripple effect in global markets.
The British pound, for instance, saw a substantial dip of 1. 41% against the dollar on November 6, its lowest point since August. Similarly, the euro fell by 2. 24%, reaching its weakest position since June. This sharp drop reflects investors’ concerns over the stability of the European economy compared to the perceived strength of the US market under Trump’ s leadership.

In Nigeria, the naira continued its decline against the dollar, compounding issues in a foreign exchange market that has already been under pressure. According to FMDQ Securities data, the naira fell to N1, 681. 65 per dollar on Wednesday, down from Tuesday’ s close of N1, 671. 32 per dollar— a 0. 61% decrease. In the black market, the naira also suffered, trading at N1, 735 to the dollar, reflecting a N5 drop from the previous day.
The ongoing depreciation of the naira against the dollar highlights the currency’ s vulnerability in Nigeria’ s fluctuating economy. The country’ s limited dollar supply in the Nigerian Autonomous Foreign Exchange Market (NAFEX) exacerbates this issue. On Wednesday, dollar supplies in the NAFEX window were recorded at $196. 78 million, but this has not been sufficient to stabilize the naira, leading to an unfavorable exchange rate for local businesses and consumers.
The Lagos Chamber of Commerce and Industry (LCCI) has weighed in on the naira’ s situation, expressing optimism that a re- evaluation of Nigeria’ s foreign exchange policy could stabilize the currency. According to LCCI President Gabriel Idahosa, a review of the current free- floating exchange rate by the Central Bank of Nigeria (CBN) could help ease the naira’ s decline. He suggested that a more managed approach might restore confidence in the naira, making it a more attractive currency for investors.
Idahosa’ s perspective aligns with the need for structural economic reforms in Nigeria to reduce dependence on the dollar. By diversifying the economy and strengthening local industries, Nigeria could reduce the impact of external economic shocks. For now, the dollar’ s dominance against the naira underscores the challenges facing the Nigerian economy, which relies heavily on oil exports and is vulnerable to fluctuations in the global energy market.
The dollar’ s surge serves as a reminder of the interconnectedness of global economies, where political shifts in one nation can trigger far- reaching consequences worldwide. As Trump’ s policies unfold, global currency markets are expected to remain volatile, with the US dollar likely to maintain its strong position. However, for economies like Nigeria’ s, this period underscores the urgency of strengthening domestic economic resilience to weather such international financial trends.

Naira slumps against dollar to end on negative note....Read Full Article>>

The Naira depreciated against the dollar on Friday at the foreign exchange market to end the week on a negative note.

FMDQ data showed that the weakened to N1678.87 per dollar on Friday from the N1639.50 exchange rate on Thursday.

This represents a N39.37 depreciation against the dollar compared to N1678.87 exchanged on Thursday.

Meanwhile, at the parallel market, the naira gained N10 to exchange at N1740 per dollar on Friday compared to N1750 recorded the previous day.

The development comes as Foreign Exchange transactions turnover surged astronomically to $1403.76 million on Friday from $244.96 million on Thursday, according to FMDQ data.

DAILY POST reports that in the week under review, the naira recorded mixed sentiments of gains and losses.

This showed Naira had continued to experience fluatuations in the FX marketers despite the Central Bank of Nigeria interventions.

Recall that on Wednesday, CBN authorised commercial, merchant, and non-interest banks in the country to manage tradeable foreign currencies deposited in domiciliary accounts established through the new Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme.