• Thursday, May 23, 2024
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BusinessDay

Naira nears 1,000/$ on black market

Naira loses 1.47% on black market after rate hike

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.

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.