The Naira gained slightly against the Dollar on Monday

June 4, 2024

The Naira gained slightly against the Dollar on Monday, closing at N1,476.12

Here’s an elaboration on the information you provided about the Nigerian Naira (NGN) against the US Dollar (USD) on Monday:

Official Market (NAFEX):

Appreciation: The Naira gained 0.67% against the Dollar, closing at N1,476.12 compared to N1,485.99 on Friday.
Lower Dollar Supply: Despite the appreciation, the total dollar amount traded dropped significantly (63.78%) from $336.54 million on Friday to $121.87 mi ll i o n o n M o n d a y . * * Bl a c k M a r k e t : * * * * * V o l a t i l i t y : * * T h ee x c han g er a t e f l u c t u a t e d b e tw ee n N 1, 475 an d N 1, 510 p er d o ll a r, in d i c a t in g so m e ma r k e t in s t abi l i t y . * * * Cl os in g R a t e : * * T h e b l a c kma r k e t c l ose d a tN 1, 480 p er d o ll a r, w hi c hi ss l i g h tl y hi g h er t han t h eo ff i c ia l ma r k e t r a t e . * * P oss ib l e R e a so n s : * * * * * L imi t e d Do ll a r A v ai l abi l i t y : * * T h e l o w er d o ll a rs u ppl y in t h eo ff i c ia l ma r k e t mi g h t b e d u e t o v a r i o u s f a c t ors, l ik e d ecre a se df ore i g nin v es t m e n t or C e n t r a lB ankin t er v e n t i o n . * * * I n cre a se d De man df orDo ll a rs : * * St ro n g d e man df or d o ll a rs in t h e b l a c kma r k e t co u l d b e d r i v e nb y f a c t ors l ik e u n cer t ain t y ab o u tt h e f u t u re v a l u eo f t h e N ai r a or an ee df or ha r d c u rre n cy f or in t er na t i o na lt r an s a c t i o n s . * * O v er a ll : * * T h e in f or ma t i o n s ugg es t s a co m pl e x s i t u a t i o n . Whi l e t h e N ai r aa pp rec ia t e d s l i g h tl y a tt h eo ff i c ia l ma r k e t, t h e l o w er d o ll a rs u ppl yr ai sesco n cer n s . T h e b l a c kma r k e t v o l a t i l i t y f u r t h er hi g h l i g h t s t h e u n d er l y in g t e n s i o n . * * A dd i t i o na lP o in t s : * * * T h e p ro v i d e d l ink s mi g h t o ff er f u r t h er in s i g h t s : * “ N ai r a t os t abi l i se a t 1, 350 - 1, 450/$ – Bismarck Rewane” – An expert’s prediction on the future exchange rate.
- “Why are Nigerians so displeased with the economy?” – Context about broader economic concerns that could be impacting the currency.