Naira Recovers Slightly as Dollar Supply Surges by 147.66%
The Nigerian naira experienced a marginal recovery on Thursday, October 3, 2024, following a significant increase in dollar supply in the official market.
According to FMDQ data, the naira appreciated by 0.60% to close at N1,659.26 per US dollar, up from N1,669.15 on October 2, 2024. This rebound comes after an 8.25% decline the previous day.
Thursday’s FX turnover soared by 147.66% to $450.39 million, the largest single-day turnover since May 24, 2024 ($556.25 million). This increased liquidity contributed to the naira’s slight appreciation.
Key Highlights:
- Naira appreciates by 0.60% to N1,659.26/USD
- Dollar supply surges by 147.66%
- FX turnover reaches $450.39 million
- Naira remains under pressure despite temporary recovery
Central Bank of Nigeria Governor Yemi Cardoso emphasized the need for diversified foreign exchange sources and a strong economy to support the naira. He highlighted the Dangote Refinery as a potential game-changer for Nigeria’s dollar-starved economy.
The refinery is expected to ease FX pressure and positively impact the economy. However, Cardoso noted that achieving a strong exchange rate remains challenging due to Nigeria’s monolithic economy.
