Banks, Others Sell Naira For New Rate As Dollar Supply Increases By $110m In 24 Hours

The Nigerian naira was stable on Thursday, 27, as it traded at N1,510 against the dollar.

According to official data from FMDQ securities, the Nigerian Autonomous Foreign Exchange Market (NAFEM), the amount represents a 0.15% decline compared to the closing rate of N1,507.83 on Wednesday, 26.

During trading hours, the local currency was priced as low as N1,431 per dollar, while its high was N1,577 per dollar.

Data showed that the daily forex turnover increased significantly to $287.21 million from the $176.39 million it sold the previous day.

This depicts a S110 million increase in the volume.

More dollar inflows in Nigeria

The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, stated in a Tuesday interview with Bloomberg that the nation registered a $24 billion in total foreign exchange (FX) inflow in the first three months of 2024.

The Nigerian economy received approximately $5.95 billion in funding from the World Bank and Afreximbank in a single month, June 2024.

Another source of inflow is foreign direct investment (FDI), which refers to investments made in domestic firms by foreign corporations through things like factory setup, real estate purchases, and ownership holdings in local businesses. International exchange inflows can also come from grants, remittances, international aid, and portfolio investments.

Cardoso reported that compared to the inflows recorded in the prior quarters, the foreign exchange inflows for the first quarter of 2024 are almost 50% greater.