On Wednesday, January 24, 2024, the Nigerian naira slightly declined versus the US dollar in both the official and black markets, resulting in a 3.18% decrease in forex turnover to $56.60. The official forex market, NAFEM, reports that after the conclusion of business, the value of the native currency decreased by 0.41% to settle at N882.24 to the US dollar.
Comparing this to the N882.24, which ended the previous day, the local currency decreased by 0.41% or N3.63. N700/$1 was the intraday low, and N1313/$1 was the intraday high, indicating a broad variation of N613/$1. Data from the official NAFEM window indicates that there was $56.60 million in currency turnover at the end of trading, which was 3.18% less than the day before.
Similarly, the naira lost value at the unofficial parallel FX market, where the currency is sold. Peer-to-peer traders put the exchange rate at N1365/$1, down 0.37% from the previous day’s close. The Central Bank Governor, Mr Yemi Cardoso, declared that the naira was undervalued and pledged that the bank would strive for actual price discovery in the foreign exchange market by 2024.
Mr. Cardoso said this during his video conference keynote speech at the Nigeria Economic Group perspective for 2024. Cardoso claims that the central bank will implement measures to control inflation by working with the Ministry of Finance, which oversees fiscal policy, and using monetary policy tools.
In addition, he pledged to uphold discipline in the FX market and swiftly deal with any violations or misuses. The naira traded at N878.61 on the official market yesterday, while it registered N1360/$1 in the unofficial market.
Regarding the increase in foreign exchange reserves, Mr. Cardoso said that the bank’s collaboration with the Ministry of Finance and NNPCL guarantees that all incoming foreign exchange is returned to the bank, which will contribute to building the nation’s foreign reserve.
The Governor also mentioned that the planned restart of the three refineries in the nation will help lower PMS pump costs, which play a significant role in the CPI basket. Additionally, he pointed out that the inflation prediction aims to boost economic expansion and provide a more predictable cost environment.
