Based on FMDQ data from the past week, the Naira strengthened by N42.88 against the dollar in the foreign exchange market, following the Central Bank’s introduction of the Retail Dutch Auction System (RDUS).
As of Friday, August 2, 2024, the Naira was trading at N1617.08 per dollar, but this figure fell to N1574.20 by the end of this week at the official market. Despite this improvement, the Naira’s rate remained unchanged at the black market during the same period.
A clerk at a money exchange bureau counts Naira in Maiduguri, Nigeria, on Wednesday, May 1, 2019. Photographer: Jean Chung/Bloomberg
Last week, the Naira was exchanged between N1600 and N1605 per dollar, and this rate persisted through Friday.
The Naira’s appreciation is attributed to the Central Bank of Nigeria’s (CBN) implementation of the RDUS on Wednesday. On that day, the CBN sold $876.26 million to 26 banks at a rate of N1495 per dollar.
