Dollar Exchange Rate Rises Again in Official, Black Markets

The dollar exchange rate in both the official and black markets has risen again, starting the week on a positive note in the foreign exchange market. The Nigerian naira closed at a depreciated rate against the dollar in the official Nigerian Foreign Exchange Market (NFEM) on Tuesday, compared to the previous day.

However, there was some good news for the naira against the pound sterling and euro, as it marginally gained against the pound sterling and appreciated against the euro in the spot market. This gain reflects improving confidence and increased supply, helping to ease pressure on the currency.

Traders confirmed the depreciation of the naira against the dollar, with Abdullahi, a Bureau De Change (BDC) trader, stating the same. The positive outlook for the naira is driven by factors such as domestication, corporate debt inflow, remittances, and Eurobond issuance, which are expected to improve dollar supply and reduce pressure on the exchange rate.