• Sunday, June 23, 2024
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Naira firms by 0.39% as demand for dollars slows

Dollar nears N1,500 as scarcity hits black market

Naira on Friday strengthened against the dollar by 0.39 percent at the parallel market following a moderation in demand for the greenback.

During the morning trading session, the dollar traded at the rate of N752 as against N755 closed on Thursday.

“There was not much demand for dollars today. We are watching the movement of the exchange rate,” one trader told BusinessDay on Friday.

The naira closed flat at N464.67 per dollar at the Investors and Exporters (I&E) forex window.

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President Bola Ahmed Tinubu had in his inaugural speech on Monday signalled plans for a single exchange rate. He said monetary policy needs thorough house cleaning and that the Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.

Most foreign exchange dealers who participated in the market auction on Thursday maintained bids between N460.00 (low) and N467.00 (high) per dollar.

The foreign exchange daily market turnover increased by 53.27 percent to $250.98 million on Thursday from $163.74 million recorded on Wednesday.