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Saturday, December 3, 2022

Naira Gains 21.50% In 4days As Demand Depreciates

Naira on Thursday gained 21.50 percent against the dollar in four days, after it lost 36.52 percent of its value in 11 months at the parallel market.

The appreciation of naira was attributed to moderation in demand amid increased supply of dollars at the unofficial market.

After trading on Thursday, the dollar was quoted at an average rate of N732.50/$ compared to N890/$ quoted on Friday.

Between Wednesday and Thursday, the local currency appreciated by 4.66 percent from average of N766.66 and N732.50, across the Southern and Northern regions of the country.


Naira has been falling in the last few years, depreciating to a peak of N890 per dollar on Friday, from N565/$ at the beginning of the year. This represents 36.52 percent loss over the greenback.

In Lagos Street market, dollars exchanged at between N720 and N740 at the end of trading day on Thursday from N760 and N780 on Wednesday.

In Kano, it was quoted at N719 per dollar at the close of trading compared to N755/$ quoted on the previous day, while dollar was quoted at N730/$ on Thursday as against N765 on Wednesday in Abuja.

At the Investors and Exporters (I&E) forex window, Naira appreciated by 0.43 percent as the dollar was quoted at N446.10 on Thursday as against the last close of N445.67 on Wednesday, data from the FMDQ indicated.

Most currency dealers who participated at the foreign exchange auction on Wednesday maintained bids between N432.00 (low) and N447.09 (high) per dollar.

The daily foreign exchange market turnover increased by 27.95 percent to $93.01 million on Wednesday from $72.69 million recorded on Tuesday, data from the FMDQ indicated.

At the fixed income market on Thursday, although it was a mixed day, due to the decline recorded in the 23-MAR2025 and 22-JAN-2026 instruments, the bond market closed the day bullish compared to Wednesday, according to a report by Greenwich Merchant Bank. Overall, average yield dipped by 2bps to end the day at 14.79 percent from 14.81 percent.

The 37bps decrease in the average performance of the NT-bills market was as a result of the 2.57 percent change seen in the 11-May-2023 instrument.

Therefore, average yield settled at 10.38 percent from 10.75 percent.

However, yields traded relatively calm at the Open Market Operation (OMO) market as average yield settled at 10.84 percent, declining by 1bp.

System liquidity ended the day at N306.46 billion from N458.32 billion, decreasing by 33.13 percent. However, this had no impact on the Open Buy Back and Overnight rates which stood steady at 8.50 percent to 8.83 percent, the report stated.

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