Both the official and underground foreign exchange markets saw an increase in the value of the naira relative to the US dollar.
This is happening amid worries from speculators and worried Nigerians that the value of the naira could drop to N1,000 to the dollar.
The value of the Nigerian currency has reached a record low since the CBN floated the naira, and it may continue to decline.
On Friday, April 11, 2023, in the Investors and Exporters (I&E) and Peer-2-Peer (P2P) windows of the foreign currency (forex) market, the Nigerian naira somewhat regained its lost value versus the US dollar.
The naira recently hit a record low on the black market, with speculation pegged at N1,000 to the dollar.
Naira to dollar exchange rate on the regulated market
The naira ended Friday’s trading at N740.60 to the dollar in the I&E window, which is the official market, according to statistics from FMDQ.
In comparison to the previous day’s currency rate of N781.34 for each dollar, this indicates a 5.2% or N40.74 gain.
The strong performance of the naira on Friday resulted from a significant increase in the value of foreign exchange transactions, which rose from $58.79 million on Thursday to $164.60 million.
Naira to Dollar Exchange Rate in Unofficial Markets
Legit.ng noted that on Friday, the naira increased in value versus the US dollar and traded at N913 on the P2P market, which is primarily utilized by cryptocurrency dealers.
This is an improvement over the N940/$1 exchange rate from the day before.
The situation is the similar on the black market, where the local money slightly strengthened versus the dollar to close at N930/$ as opposed to the N945/$ quoted by traders on Thursday.
Printing new naira currency notes and discarding the old ones cost around N29 billion.
While this was going on, Legit.ng reported that the CBN had provided a breakdown of its financial performance and expenses incurred during the course of the 2022 calendar year.
Over N29 billion was spent on producing naira notes and getting rid of the bad ones, which is included in the expenses listed.
Regularly, the CBN destroys unsuitable banknotes under rigorous security and with Section 18(d) of the CBN Act 2007’s approval.