Naira gains 0.9% against dollar on Trump’s inauguration day

The naira recorded gains against the dollar in the parallel market on Monday, appreciating by 0.9 percent on the day Donald Trump, the President-elect of the United States, prepared for his inauguration following his victory in the November 2024 elections.

On the parallel market, also known as the black market, the naira strengthened by N15 as the dollar was quoted at N1,665 on Monday compared to N1,680 on Friday.

However, in the Nigerian Foreign Exchange Market (NFEM), the naira’s performance was flat. It closed with a slight depreciation of 0.2 percent as the dollar was quoted at N1,551 on Monday, compared to N1,548 at the close of trading on Friday. Authorised currency dealers reported the highest rate for the dollar at N1,551.50 on Monday, a marginal decline from N1,552 on Friday. The lowest rate recorded in the market was N1,545, compared to N1,540.20 on the previous trading day.

Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON), highlighted concerns about the potential impact of President Trump’s policies on Nigeria’s foreign exchange inflows. “President Trump is an unpredictable person and not a believer in Africa,” Gwadabe stated.

He noted Trump’s intention to issue an executive order for the massive deportation of Diaspora residents in the United States, which could significantly affect Nigeria. “The Diasporas are the umbilical cord of many families back home here in Nigeria. If implemented, his planned policy of massive deportation will reduce the inflow of Diaspora remittances into the economy and place additional pressure on our exchange rate stability,” he warned.

Gwadabe stressed the importance of reducing reliance on limited sources of foreign exchange inflows to mitigate such risks.

Trump’s inauguration ceremony, set to commence at 5 p.m. Nigerian time on Monday, January 20, 2025, will include him swearing the oath of office using two Bibles. One is the same Bible used by Abraham Lincoln during his 1861 inauguration, and the other is a family heirloom gifted to Trump by his late mother, Mary Anne MacLeod.