By Milcah Tanimu
The Nigerian currency, the naira, has appreciated against the US dollar in the official foreign exchange market. Recent data shows that the naira improved by 0.6% in the official market, closing at N1,622.57 on October 10, 2024. However, it depreciated in the black market and weakened against the British pound and euro.
At the Nigerian Autonomous Foreign Exchange Market (NAFEX), the naira showed a 0.16% improvement, gaining N2.56 from the previous day’s rate of N1,625.13/$1. This gain occurred despite a drop in forex supply, which decreased by $25.04 million, or 14.7%, to $145.56 million from Tuesday’s $170.60 million.
Naira Against Pound and Euro
In contrast, the naira lost value against both the British pound and euro in the official market. According to data from the Central Bank of Nigeria (CBN), the naira weakened by N41.18 against the pound, finishing at N2,126.26/£1 compared to the prior rate of N2,085.08/£1. Against the euro, the naira dropped N26.11 to settle at N1,772.69/€1, down from N1,746.58/€1 earlier in the week.
In the parallel market, also known as the black market, the naira also recorded a loss against the dollar. Traders reported that one dollar now exchanges for N1,695, up from the previous rate of N1,690.
Muda Yusuf’s Recommendations
Earlier, Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), urged the CBN to peg the customs duty rate to N1,000/$1 to alleviate current hardships in the country. He believes this adjustment is essential for stabilizing market prices amid the ongoing cost-of-living crisis.
