Naira: FMDQ Corrects Wrong NAFEM Rate to N1453
The Nigerian naira exchange rate appreciated on Thursday due to efforts by the Central Bank of Nigeria (CBN) to restore confidence in the forex market. The naira strengthened to N1382, according to the FMDQ platform, which shows the official exchange rate.
Upon accessing FMDQ following regular business hours, MarketForces Africa saw that the NAFEM rate closed at N1382. However, as of March 21, 2024, an update to FMDQ FX data revealed that the naira closed at N1453 per US dollar.
Late on Thursday, FMDQ displayed N1382 as the NAFEM rate on its window as the local currency continued to reclaim value across FX markets. In a report, Goldman Sachs analysts predicted that the naira would appreciate to N1200 in 12 months.
Owing to FX whales’ actions in the parallel market, the local curriculum has been deemed to be significantly undervalued. Recent FX data tracked indicates that the naira has been trending positively with improved forex liquidity across the markets.
The black market rate has improved significantly, trading at N1370. This has reduced the gap between official and parallel market rates strongly. Speculative activities would reduce now, analysts told MarketForces Africa.
“N1382 quoted by FMDQ could be a glitch in data displayed…The naira hasn’t gained as much as that over a long time,” analysts explained in a chat. #Naira: FMDQ Corrects Wrong NAFEM Rate to N1453
