The Nigerian Naira appreciated by N42.88 against the US Dollar during the week, influenced by the Central Bank of Nigeria’s (CBN) auction system.
The Naira appreciated by N42.88 against the dollar in the foreign exchange market over the past week, coinciding with the Central Bank’s implementation of the Retail Dutch Auction System.
According to FMDQ data, the Naira traded at N1617.08 against
the dollar last Friday, August 2, 2024, but depreciated to N1,574.20 this
Friday in the official market.
In contrast, the Naira remained stable in the parallel
market during the week under review. Last Friday, the Naira exchanged between
N1600 and N1605 per dollar, and the same rates were recorded this Friday.
The Naira's gains can be attributed to the Central Bank of
Nigeria’s introduction of the Retail Dutch Auction System (RDUS) in the foreign
exchange market on Wednesday. The apex bank revealed that it sold $876.26
million to 26 banks at an exchange rate of N1,495 per dollar on that day.
These gains occurred amidst the hunger protests that began
last week Thursday, which had an impact on economic activities in certain
states across the country.