Hurray! Naira Strengthens Further Against Dollar, Now N450 To $1

Advertisement

The naira has continued to strengthen against the dollar and other major currencies, on Monday it gained N10 to exchange at N450 to a dollar at the parallel market following the Central Bank of Nigeria (CBN) continuous pumping of the greenback into the interbank foreign exchange market to meet the demand of bank customers.

The pound sterling and the euro exchanged at N560 and N470 respectively. At the Bureau de Change (BDC) window, the naira sold at N399 to a dollar, CBN controlled rate, while the pound sterling and the euro closed at N610 and N500.

Also See: Exchange Rate: Naira Hits Lowest Rate Ever As CBN Announces New FX Policy

The naira traded at N305.50 to a dollar at the inter-bank market.

In a statement released Monday, the CBN’s acting Director, Corporate Communications, Mr. Isaac Okorafor, said the central bank’s commitment to providing enough FX for legitimate business remains unshaken, reiterating that it would do “everything possible” to maintain the steady supply of forex to the market.

The CBN had earlier pumped fresh $180 million into the foreign exchange market, in its bid to solve the problem of forex scarcity. It also pumped $180 million for personal travel allowance (PTA), school fees, and medical trips abroad and another $100 million was sent into the system via banks for wholesale forwards market.

Naira drops
Naira strengthens against the dollar

Last week, after it announced fresh policy actions in the foreign exchange market, based on directives from the National Economic Council (NEC), the bank pumped $370.9 million into the forex market.

Although some traders are still in shock at the performance of the naira, as many believed that the Nigerian currency would sink further to N1,000 to a dollar, others expressed confidence in the new forex policy and its ability to restore the naira to its lost glory.

The Deputy Senate President, Senator Ike Ekweremadu, the recently slammed the President Muhammadu Buhari led administration for the current state of the nation’s economy, saying naira has become Africa’s Worst Currency under the All Progressives Congress leadership.

“They told us that one US dollar would be one naira when they take over. Has that happened? Today, our currency is the worst currency in the whole of Africa. Is that the type of democracy we looked forward to? I can see a situation where the price of oil is going up and the value of naira is going down. What type of economics is that?”

Also See: Petrol Now Selling At N170 Per Litre In Zamfara State

Analysts are projecting that the naira might appreciate to about N400 to the dollar on the parallel market this week, effectively meeting the CBN’s objective of closing the gap between interbank and parallel market rates.

Topics: