Despite turbulence Naira steadies at parallel, gains at official window

After several days of turbulence, the naira regained it strength and steadied against the United States dollar, on Tuesday, at parallel market selling at N1,365/$1.

The naira also regained it strength at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the nation’s official window as it closes at N878.61/$1 against N925.34/$1 it closed on Monday.

According to Aboki FX, the naira maintained its stability for the second day after it closed for N1365/$1 on Monday.

However, according to data from the FMDQ Securities Exchange, an official platform that oversees foreign exchange (FX) trading in Nigeria, the naira recovered by N46.73 against the United States dollar.

The naira recovered from N925.34/$1 that it closed on Monday, January 23, 2024 to appreciate to N878.61/$1, on Tuesday January, 23rd, 2024

However, it could be recalled that the naira stablised after the Central Bank of Nigeria (CBN), raised the alarm that Nigerians spent a whooping $1.58bn on health tourism, foreign education, and other personal matters in six months.

According to data from the apex bank’s Balance of Payment compilation spanning the first six months of 2023 showed that Nigerians spent $245.68m on overseas health-related issues, $896.09m on foreign education, and $434.63m on other personal foreign needs.

The apex bank, in an explanatory note titled, Note D, defined Balance of Payments as “a systematic record of economic and financial transactions for a given period between residents of an economy and non-residents.”

Medical tourism and foreign education have continued to put pressure on foreign exchange demand in the country, according to experts.