HomeBanking And FinanceNaira Nears 1,000/$ At Parallel Market

Naira Nears 1,000/$ At Parallel Market

As at the close of trading activities on Monday, the naira appreciated N1,136/$ at the official market and N1,050/$ at the parallel market.

This development is a continuation of naira’s resurgence against the United States dollar, as traders have predicted the dollar’s fall to below N1,000 before the end of the week.

According to a platform that oversees the Nigerian Autonomous Foreign Exchange Market, at the official foreign exchange market, data from the FMDQ Exchange, disclosed that the naira surged by 6.1 per cent or N69 from N1,205/$ recorded on Friday to N1,136/$ on Monday.

From $281.34m recorded on Friday, the total daily turnover dropped slightly to $251.60m on Monday.

The naira’s resurgence against the United States dollar continued as the intra-day high also improved significantly, closing at N1,227 per dollar from N1,265 per dollar quoted on Friday.

The intra-day low appreciated by N100/$1 as the dollar was quoted on the spot at N1,000 on Monday, stronger than the N1,100 quoted on Friday.

The improved rate however, occurred as a result of some foreign exchange directives by the Central Bank of Nigeria aimed at stabilising the naira.

Going memory lane, the CBN last month said it had successfully resolved all valid foreign exchange backlogs, as pledged by the CBN governor, Olayemi Cardoso, addressing inherited claims amounting to $7bn.

As against $2.64bn in February, the highest level since March 2019 ($6.07bn) Data from the FMDQ also indicated that total inflows into the NAFEM increased by 41.7 per cent to $3.75bn.

The apex Bank had last week reviewed the exchange rate for the Bureau De Charge operators to N1,101 per dollar from N1,251/$1 as it plans to sell $15.88m to 1,588 eligible BDC operators.

As part of measures to control inflation and stabilise the naira, the CBN last month raised its benchmark interest rate, known as the Monetary Policy Rate by 200 basis points to 24.75 per cent from 22.75 per cent in February 2024.

Analysts at Afrinvest said, “We anticipate that the naira would continue to strengthen as the CBN intensifies efforts to bolster liquidity in the market.”

At the unofficial market, currency traders at the popular Wuse Zone 4 market complained bitterly about the naira rates, stressing that the business was no longer profitable.

Malam Ibrahim in a chat with our correspondent claimed he bought the dollar between the rate of N950 and N980 and sold between  N1,010 and N1,020

According to him, the low demand is making currency traders negotiate below N1,000 as buying price and selling between N1,010 and N1,020.



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