Naira nears 1,000/$ on black market

Naira, Nigeria’s currency on Monday showed signs of appreciating to N1,000 before the end of the week as it has risen to N1,115 on the black market.

Some traders were quoting dollars at the rate of N1,118 and N1,120 on the parallel market on Monday.

At the official foreign exchange (FX) market Naira recorded a four-month high of 1,142.38/$ as dollar supply increased on Friday.

Naira has been appreciating against the dollar since the past few weeks following FX reforms by the Central Bank of Nigeria (CBN).

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

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The apex bank last month said it has successfully resolved all valid foreign exchange backlogs, as pledged by Governor Olayemi Cardoso, addressing inherited claims amounting to US$7 billion.

Total inflows into the NAFEM increased by 41.7 percent to $3.75 billion as against $2.64 billion in February – the highest level since March 2019 ($6.07 billion), data from the FMDQ indicated.

Nigeria’s Central Bank last week reviewed the exchange rate for the Bureau De Charge (BDC) Operators to N1,101 per dollar from N1,251/$1 as it plans to sell $15.88 million to 1,588 eligible BDCs.

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 (MPR) by 200 basis points to 24.75 percent from 22.75 percent in February 2024.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.