The Nigerian naira has strengthened against the US dollar in the parallel market, reaching a rate of N1,485 per dollar, a N15 gain from the previous day’s N1,500. This rise follows the Nigerian Central Bank’s (CBN) efforts to enhance dollar liquidity in the market, providing support to the local currency. The improved availability of foreign exchange has contributed to the naira’s gains in the black market.
On the official Nigerian Foreign Exchange Market (NFEM), the naira also gained, with the dollar trading at N1,497.11 on Monday, up from the previous day’s N1,500.73. This appreciation represents a narrowing of the exchange rate gap to just N12 per dollar. The CBN’s ongoing focus on increasing market liquidity and transparency is playing a crucial role in this shift.
In the past week, the official and parallel market exchange rates for the naira converged for the first time in nearly two years, marking a significant milestone in Nigeria’s foreign exchange policy. This convergence reflects the positive impact of the Central Bank’s strategies in addressing the country’s exchange rate challenges.
Olayemi Cardoso, a key figure in the CBN, emphasized the importance of liquidity enhancement and transparency in the foreign exchange market. With these policies, the CBN aims to maintain stability in the naira’s value and ensure a more predictable exchange rate environment for the country.
SOURCE: BUSINESS DAY