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Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers - Business - Nairaland

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Naira Gains Against Dollar, Trades At N1113/$ At The P2P Market / Naira Depreciates To ₦410 Per Dollar As Local Currency Weakens / Naira Gains As Politicians Pump ‘election Dollars’ Into Economy (2) (3) (4)

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Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by PressMyButton: 8:15am On Dec 07, 2024
The exchange rate between the naira and the dollar continued its rapid appreciation on the official EFEM market, closing at N1,535/$1 on Friday, December 6, 2024.

This marks a significant milestone, as the naira strengthens further following three consecutive days of appreciation since the Central Bank of Nigeria (CBN) introduced the Enhanced Foreign Exchange Market System (EFEMS).

For the trading day, the intra-day high was N1,575, while the low was N1,510, with the average rate printing at N1,533.

Meanwhile, the black market rate fell sharply to as low as N1,570/$1, with operators reporting an unusual scenario where there were more sellers struggling to find buyers.

According to sources who spoke to Nairametrics, “No one wanted to buy dollars,” indicating a fundamental shift in market sentiment.

Some sellers informed Nairametrics they offloaded for as low as N1,500/$1. Meanwhile some cryptocurrency platforms exchanged stablecoins for the naira at less than N1,500$1 via P2P platforms.

Sustained rally in the official market
At N1,535/$1, the naira recorded one of its best performances in recent months, adding to the momentum built since EFEMS was launched.


Friday’s closing rate represents a notable improvement over the previous day’s N1,567/$1, reflecting increasing demand for the naira in the official forex market. On the parallel market, rates dropped further to about N1,570/$1, as sellers struggled to find buyers.

Meanwhile, some parallel market operators suggest the exchange rate sold for as low as N1,500/$1 for inflows.

The unusual glut of dollar sellers reflects growing confidence in the naira’s trajectory and reduced speculative activity.

This aligns with the narrowing gap between the official and black market rates, which has fallen to less than N35, or approximately 2.3%, as of Friday’s close.

Investment platforms like Bamboo and Trove continued to quote rates for converting naira to dollars at N1,549.50 and N1,629.49 respectively.
This compares to compared to N1,653/$1 and N1,654/$1, suggesting a slight lag in adjustment compared to official and parallel markets.

Meanwhile, flagship cryptocurrency Bitcoins sold for $101k as of 8pm Nigerian time with altcoins all showing signs of gains ahead of an impending Trump Presidency.

Black market dynamics shifting

The rapid appreciation of the naira on the parallel market suggest the EFEMS is impacting unofficial forex operations as speculators struggle to understand the impact.

With fewer buyers willing to hoard dollars and more sellers looking to offload, the naira’s strength appears to be translating across both official and unofficial markets.
Market analysts suggest that this development signals a paradigm shift, as individuals and businesses now see greater value in holding naira over dollars.

EFEMS driving transparency

The introduction of EFEMS by the CBN appears to be driving transparency and efficiency in Nigeria’s forex market.

The platform, which consolidates all forex transactions into a single market, has now delivered gains for four consecutive days, further narrowing the disparity between the official and parallel market rates.

EFEMS requires all FX transactions to be priced through the system, ensuring that daily exchange rates are transparent and accessible to the public.

The centralized pricing mechanism has been pivotal in reducing speculative behavior and bolstering confidence in the naira.

https://nairametrics.com/2024/12/06/breaking-naira-gains-rapidly-against-the-dollar-as-sellers-struggle-to-find-buyers/?amp=1

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Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by Softmirror: 8:15am On Dec 07, 2024
Now this is good news.

221 Likes 12 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by PressMyButton: 8:18am On Dec 07, 2024
Respect to Jagaban, he knows how to assemble the best brains, as Governor and now as President. Anywhere that's difficult to enter, just leave it for Tinubu, that's where he likes to dismantle into pieces.

After God, na Tinubu 💪 God bless Nigeria.

170 Likes 23 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by Yankee101: 8:19am On Dec 07, 2024
News of 2 refineries should reduce the runaway depreciation

But it takes another policy somersault to revert back to 1900

45 Likes 6 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by Yankee101: 8:20am On Dec 07, 2024
But it’s a good opportunity to buy the dollar now using naira

47 Likes 5 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by JoeyNaza: 8:23am On Dec 07, 2024
I can confirm this. Dollar fell a lot in the black market too.

EDIT: No celebrate too much or praise Tinubu. My BDC guys explained that it's seasonal, as diaspora people are returning for the holidays, they are selling their FX in exchange for Naira, which is temporarily propping up naira value. One of them made a funny remark that all the "yankee bois" want to ride on the bad exchange rate to become billionaires in Naira grin grin, so they are selling off their dollars more than usual because it will fetch them more this period.

I am not unpatriotic, I support Naira gain, it is for our collective benefit.

220 Likes 20 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by PressMyButton: 8:28am On Dec 07, 2024
Yankee101:
News of 2 refineries should reduce the runaway depreciation

But it takes another policy somersault to revert back to 1900
Even when Dangote refinery came on board, naira did not appreciate. Give credit where it is due, the new digital platform Cardoso created has turned things around. Stop downplaying every positive news, it's a sign of sickness.

159 Likes 19 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by jmoore(m): 8:28am On Dec 07, 2024
Their voodoo have expiring date.
Come back by April to check the exchange rate.

29 Likes 1 Share

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by Kukutenla: 8:28am On Dec 07, 2024
This is good news

Bit it seems CBN is flooding the market with dollars or where's the excess dollars coming in from? It was previously claimed that we need to become productive for our currency to appreciate

The value of the naira has been heavily decimated since APC came into power we hope the are able to work out a genuine respite for our currency

10 Likes

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by iykepromotions: 8:32am On Dec 07, 2024
Nigeria should export more. Even digitally. And be mors productive. That's all. For digitally, you can buy an expired domain with your card for $9 and sell to the whites above $100.

Below is one of my own recent sales.

You just need to be creative and positive minded

For free details on getting started, check https://www.nairaland.com/3430037/what-make-money-online

12 Likes 2 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by Sheuns(m): 8:33am On Dec 07, 2024
If you have money, buy as much as possible. It’ll return to status quo by January.

30 Likes

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by DeLaRue: 8:37am On Dec 07, 2024
It is easy to be a CBN Governor when times are good ala Messrs Soludo and Sanusi.

No Nigerian CBN Governor in the last 50 years has faced the difficult economic circumstances that Mr Cardoso has faced since he was appointed.

He may not have the bravado of some previous CBN Governors, but he has quietly proven himself as being super competent.

If you doubt me, ask Turkey.

As Turkey's currency has faced very turbulent times in recent years, the country has tried more than 4 central bank Governors in less than 3 years, yet their currency is still in rhe doldrums.

56 Likes 8 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by PressMyButton: 8:42am On Dec 07, 2024
Kukutenla:
This is good news

Bit it seems CBN is flooding the market with dollars or where's the excess dollars coming in from? It was previously claimed that we need to become productive for our currency to appreciate

The value of the naira has been heavily decimated since APC came into power we hope the are able to work out a genuine respite for our currency
What's wrong in CBN flooding the market when there's excess liquidity?. For your info, CBN has licensed IOCs to sell 50% of their export proceeds to FX dealers.. so, everybody is no longer depending solely on CBN for dollars anymore.

100 Likes 5 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by jmoore(m): 8:43am On Dec 07, 2024
PressMyButton:

Even when Dangote refinery came on board, naira did not appreciate. Give credit where it is due, the new digital platform Cardoso created has turned things around. Stop downplaying every positive news, it's a sign of sickness.

You guys never learn from history. Or I should say the propaganda of Tinubu always have expiry date.

https://www.nairaland.com/8038056/naira-appreciates-1382-after-7

26 Likes 2 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by SalamRushdie: 8:46am On Dec 07, 2024
PressMyButton:
Respect to Jagaban, he knows how to assemble the best brains, as Governor and now as President. Anywhere that's difficult to enter, just leave it for Tinubu, that's where he likes to dismantle into pieces.

After God, na Tinubu 💪 God bless Nigeria.

Someone that wrecked GDP from 300bn dollars to 190 bn dollars in one year ?

Someone that wrecked GDP per Capita form $2500 to $877 in just one year ?


Some that caused egg prices to jump from 2500 to 7000 Naira in one year ?

You say he knows how to assemble the best minds ? You are not ok 😅

Well for those wondering why the Naira gained here is the reason:

1 Diasporan have started arriving in droves for the Christmas festivities and they are all looking for Naira to spend so they are changing dollars .

2 : Diasporans that are not coming for Xmas have also started sending dollars to their loved ones so they can shop for Christmas early.

This is what is responsible for the Naira gain and not any Tinubu

100 Likes 13 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by Kukutenla: 8:47am On Dec 07, 2024
PressMyButton:

What's wrong in CBN flooding the market when there's excess liquidity?. For your info, CBN has licensed IOCs to sell 50% of their export proceeds to FX dealers.. so, everybody is no longer depending solely on CBN for dollars anymore.
That's manipulation no longer floating
I thought defending the naira was a bad idea was what we were told
Which IOC will sell 50% of their revenue to forex dealers. To what end?

14 Likes 2 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by SalamRushdie: 8:48am On Dec 07, 2024
Kukutenla:
This is good news

Bit it seems CBN is flooding the market with dollars or where's the excess dollars coming in from? It was previously claimed that we need to become productive for our currency to appreciate

The value of the naira has been heavily decimated since APC came into power we hope the are able to work out a genuine respite for our currency
Not the CBN this time but Diasporans arriving for Xmas and diasporan sending their loved ones Christmas dollars

25 Likes

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by SalamRushdie: 8:48am On Dec 07, 2024
PressMyButton:

Even when Dangote refinery came on board, naira did not appreciate. Give credit where it is due, the new digital platform Cardoso created has turned things around. Stop downplaying every positive news, it's a sign of sickness.

Has nothing to do with the Bloomberg terminal and you will find out soon

7 Likes 2 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by chatinent: 8:49am On Dec 07, 2024
The most difficult job in Nigerian politics must be to defend Tinubu and the APC.

29 Likes 3 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by Paraman: 8:49am On Dec 07, 2024
I think EFEMS is the major reason the naira is strengthening

19 Likes 2 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by Softmirror: 8:49am On Dec 07, 2024
SalamRushdie:

Not the CBN this time but Diasporans arriving for Xmas and diasporan sending their loved ones Christmas dollars

You mean they still dey carry dollar waka from Yankee come Nigeria?! 🥴

92 Likes 3 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by Yankee101: 8:50am On Dec 07, 2024
PressMyButton:

Even when Dangote refinery came on board, naira did not appreciate. Give credit where it is due, the new digital platform Cardoso created has turned things around. Stop downplaying every positive news, it's a sign of sickness.

An online platform is appreciating the naira? Can you listen to yourself? It’s not the fundamentals but cosmetics that’s moving the pendulum?

Cardoso has been an all around disaster. Besides his wanton stealing, Emiefiele is comparatively way ahead of Cardoso in managing fiscal and monetary policies

2 Likes 2 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by PressMyButton: 8:52am On Dec 07, 2024
jmoore:


You guys never learn from history. Or I should say the propaganda of Tinubu always have expiry date.

https://www.nairaland.com/8038056/naira-appreciates-1382-after-7
Your problem is that you cannot read and understand to save your life. For him to have settled $7billion backlog within 6months of his appointment is even a great plus to him. And again, CBN constantly comes up with new solutions each time to address these challenges which tells you that they are always thinking outside of the box, rather than making excuses. You naysayers are really getting your ass burnt.

76 Likes 7 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by PressMyButton: 8:54am On Dec 07, 2024
Yankee101:


An online platform is appreciating the naira? Can you listen to yourself? It’s not the fundamentals but cosmetics that’s moving the pendulum?

Cardoso has been an all around disaster. Besides his wanton stealing, Emiefiele is comparatively way ahead of Cardoso in managing fiscal and monetary policies
This village dweller doesn't understand the meaning of a digital platform. Manual intervention and manipulations is gone.

17 Likes 4 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by Kukutenla: 8:55am On Dec 07, 2024
DeLaRue:
It is easy to be a CBN Governor when times are good ala Messrs Soludo and Sanusi.

No Nigerian CBN Governor in the last 50 years has faced the difficult economic circumstances that Mr Cardoso has faced since he was appointed.

He may not have the bravado of some previous CBN Governors, but he has quietly proven himself as being super competent.

If you doubt me, ask Turkey.

As Turkey's currency has faced very turbulent times in recent years, the country has tried more than 4 central bank Governors in less than 3 years, yet their currency is still in rhe doldrums.
It is crass sycophancy and disingenuous to play down the success of others and uplift a failure just for political expediency.
Soludo gave us the megabanks we have today and a virile microfinance industry
Sanusi improved on it reverb with some of his foibles. He advocated for subsidy removal which was strongly resisted. Cardoso has been trying different approaches and changing tact. He's overseen the worst run down of our currency in our history taking it to the worst performing in Africa.

9 Likes 2 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by Paraman: 8:56am On Dec 07, 2024
iykepromotions:
Nigeria should export more. Even digitally. And be mors productive. e
We are exporting more oga

https://www.nairaland.com/8287150/nigeria-records-5.8-trillion-trade

11 Likes

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by PressMyButton: 8:59am On Dec 07, 2024
SalamRushdie:


Someone that wrecked GDP from 300bn dollars to 190 bn dollars in one year ?

Someone that wrecked GDP per Capita form $2500 to $877 in just one year ?


Some that caused egg prices to jump from 2500 to 7000 Naira in one year ?

You say he knows how to assemble the best minds ? You are not ok 😅

Well for those wondering why the Naira gained here is the reason:

1 Diasporan have started arriving in droves for the Christmas festivities and they are all looking for Naira to spend so they are changing dollars .

2 : Diasporans that are not coming for Xmas have also started sending dollars to their loved ones so they can shop for Christmas early.

This is what is responsible for the Naira gain and not any Tinubu

You were living a fake life and you called it an Economy, I feel so sorry for you. An Economy whereby Okonjo Iweala was borrowing to pay workers salaries and she even told us to brace up for tough times ahead. An economy whereby subsidy gulps $20billion dollars annually while 97% of our revenue was used to service debts. It even got so bad that we started borrowing to pay for subsidy, so that people like you will put on fake smiles. And you want us to continue with that?. enemies of the state.
Be informed that Mr President is focused on building a $1trillion economy by 2030. una go dey alright.

38 Likes 7 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by jmoore(m): 8:59am On Dec 07, 2024
PressMyButton:

Your problem is that you cannot read and understand to save your life. For him to have settled $7billion backlog within 6months of his appointment is even a great plus to him. And again, CBN constantly comes up with new solutions each time to address these challenges which tells you that they are always thinking outside of the box, rather than making excuses. You naysayers are really getting your ass burnt.
Babablu bulabu.

Propaganda won't save you guys.

1,300 to 1,500 is appreciation?

3 Likes

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by Kukutenla: 9:03am On Dec 07, 2024
SalamRushdie:

Not the CBN this time but Diasporans arriving for Xmas and diasporan sending their loved ones Christmas dollars
That could be
But the sheer volume required to drop over 200 from both parallel and official rates must be huge

8 Likes

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by PressMyButton: 9:03am On Dec 07, 2024
jmoore:

Babablu bulabu.

Propaganda won't save you guys.

1,300 to 1,500 is appreciation?
Election loss still dey pain una, no Presidency for you. Go and bite a tree 🌲

After God, na Tinubu 💪 God bless Nigeria

19 Likes 2 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by PressMyButton: 9:07am On Dec 07, 2024
SalamRushdie:

Not the CBN this time but Diasporans arriving for Xmas and diasporan sending their loved ones Christmas dollars
What about Euro bonds and FPIs that came in?. What about the rising foreign reserves? abi na diasporans dey send money into the foreign reserves?. dey play.

After God, na Tinubu 💪

15 Likes 3 Shares

Re: Naira Gains Rapidly Against Dollar As Sellers Struggle To Find Buyers by jmoore(m): 9:07am On Dec 07, 2024
PressMyButton:

Election loss still dey pain una, no Presidency for you. God and bite a tree 🌲

After God, na Tinubu 💪 God bless Nigeria
Ran out of defending propaganda, hence the yeye reply.

Of course, Tinubu is greater than prophet Muhammad.
Babablu bulabu.

6 Likes 2 Shares

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