Naira makes slight recovery after exchanging at N815 against dollar at official forex market

LEGIT NG

The Nigerian currency, the naira, continued its free fall against the American dollar across the various foreign exchange (FX) market segments as players reacted to the Central Bank of Nigeria (CBN) exchange rate liberalisation. 

Data from FMDQ securities showed an exchange rate between the naira and dollar hit an intra-day high of N815/$ at the official Investor & Exporter Window on Wednesday, June 21, 2023. 

This is the highest rate naira has exchanged against the dollar on the official market.

However, at the end of Wednesday’s trading, Nigerian currency recovered some of its value to close the day’s business at N763.17/$.

Nevertheless, the closing rate represents a N6.56 or 0.87% depreciation compared to Tuesday’s closing value of N756.61/$1.

Naira value at unofficial market 

The Nigerian currency also weakened at the unauthorised parallel and Peer to Peer forex market on Wednesday. 

Checks by Legit.ng show that in the P2P arm of the market, used mainly by online forex customers, the naira lost N9 of its value against the dollar to exchange at N785/$1 compared to Tuesday’s value of N776/$1.

While in the black market, the local currency lost N5, trading at N765/$1 compared to the rate of N760/$1 in the preceding session.

Expert insight on naira to dollar exchange rate 

Analysts project that the naira will continue to fall in the coming days but will find its actual value later. 

JP Morgan, an American multinational financial services firm, in a recent report, noted that the naira is expected to appreciate and trade at about N600 to the dollar in the coming months. 

Also, KPMG Nigeria projected that the country’s foreign exchange (FX) rate would settle between N650/$ to N750/$. 

However, this will largely depend on how many foreign currencies Nigeria can attract into the country. 

This article originally appeared in Legit NG