Naira slightly appreciates at official forex market as dollar supply improves

According to data from the FMDQ website, the Naira rate closed at N755.27/$1 on Friday, indicating an appreciation of N20.04 or 2.6 percent compared to the previous session’s rate of N775.31/$1 on Thursday.

During the trading day, the dollar fluctuated between an intra-day high of N700.00 and a low of N799.90 before settling at N755.27, as reported by the data.

Forex turnover decreased by 12 percent ($127.82 million) from the previous session on Thursday, when it was at $144.55 million.

In contrast, the parallel market data from AbokiFX indicated that the naira maintained stability on Friday, trading at N1000/$1 due to the forex scarcity.

Meanwhile, at the Abuja street market, currency dealers reported exchanging the dollar at N993/$1 on Friday, slightly lower than the N997.00 rate on Thursday.

Concerns about scarcity of dollars were raised, with vendors attributing it to a lack of government supply. Some suggested that dollars were being hoarded, with plans to resell them when the currency’s value appreciates.

“We are only recycling the dollars you see in the market. No new dollars are circulating as we speak,” a trader said.