The Nigerian currency, the naira, traded lower in the FX market on Tuesday, December 24, 2024, depreciating marginally to N1,540.65 per dollar.
The local currency opened trading in the Electronic Foreign Exchange Market (EFEMS) at N1,541, gaining 0.04% before closing at the new rate.
Naira falls marginally
Information from the MDQ Exchange shows that the naira’s value fell slightly by 0.07% to close at N1,540.65 per dollar.
Currency traders quoted the dollar at a high of N1,542 and a low of N1,437.35 per dollar.
The development comes amid a rise in Nigeria’s foreign exchange reserves.
Nigeria’s FX reserves rise
Data from the Central Bank of Nigeria (CBN) shows that the country’s gross foreign exchange reserves hit $40.848 billion, a three-year high.
According to reports, the current Reserves can fund nine months of imports and economic activities.
Diaspora remittances increase
CBN said that Nigerians abroad display more confidence in the economy by sending FX home via International Money Transfer Operators (IMTOs).
Per the apex bank, diaspora remittances via IMTOs hit $4,22 billion from January to October, more than the $2.62 billion reported in the same period last year.
Cardoso, CBN governor, said the remittance increase is 61.1% in the last 12 months, noting that it increased from $336.61 million in September to $402.38 million in October 2024.
He disclosed that the rise is due to efficiency in the remittance process, good government policies, and the increasing confidence of Nigerians abroad in the economy.
Source: www.legit.ng
