After many days of volatility, the naira rallied at the official I&E Window on Tuesday, ending at N878.61/$1 compared to N925.34/$1 on Monday. The new figures show a significant increase in the value of the local currency, which had previously closed at more than 1000/dollar in the official window over a week ago.
The local currency has been under pressure in recent days due to ongoing foreign exchange shortages. Some experts and stakeholders, however, have connected the recent pressure on the local currency to suspected dollar hoarding by some bank clients.
On the parallel market on Tuesday, the local currency closed flat at 1,365/dollar, nearly unchanged from Monday.
The development represents a slight halt in the steady fall of the local currency at the black market. It had recently slid from N1,200/dollar to over N1,300/dollar about a week ago.
A Bureau De change operator in Zone 4, Abuja, who simply identified himself as Suraju Sani, said the dollar sold at N1,350 to the naira in the capital city.
He said, “Dollar is now N1,350. That’s the highest I can buy and I can’t go beyond that amount. I sell between N1,360 and N1,365”
Another operator, Ibrahim Yahu, however, stated that he could only sell the dollar at the rate of N1,360. According to Aboki FX, the naira maintained its stability for the second day after it closed for N1365/$1 on Monday.
However, according to data from the FMDQ Securities Exchange, an official platform that oversees foreign exchange trading, the naira recovered by N46.73 against the United States dollar.
The naira recovered from N925.34/$1 that it closed on Monday, January 23, 2024, to appreciate to N878.61/$1, on Tuesday, January, 23rd, 2024
However, it could be recalled that the naira stabilised after a Central Bank of Nigeria report showed Nigerians spent a whopping $1.58bn on health tourism, foreign education, and other personal matters in six months.
According to data from the apex bank’s Balance of Payment compilation spanning the first six months of 2023 showed that Nigerians spent $245.68m on overseas health-related issues, $896.09m on foreign education, and $434.63m on other personal foreign needs.
