Following a Thursday closing of 740.67/$ in the Investor & Exporter FX window, the naira appreciated against the dollar.
The naira closed on the I&E window on Wednesday at 773.17/$, continuing its upward trend that began after the Central Bank of Nigeria announced its intention to intervene in the foreign exchange market on Monday.
A Bureau de Change employee in the parallel market named Musa Hassan mentioned on Thursday that “the naira was bought and sold at N835 and 850 today.” The value had not much altered from how it traded on Wednesday, according to him.
The CBN’s announcement was having an effect on the forex market, according to Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria.
“He is clear on his message to calibrate supply and sanction illegal economic behavior of market participants, and this has positively impacted the recent positive naira strength in the market,” he said.
However, given that we have the willing buyer and willing seller paradigm, there is a need for operational and policy democratization and de-monopolization of market participants.
In order to expand the product breadth and deepen the market, BDCs must be utilized.
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The CBN’s acting governor, Folashodun Shonubi, announced on Monday that further steps would be taken to stabilize the naira versus the dollar after updating President Bola Tinubu at the State House in Abuja on the bank’s efforts to stop the currency’s drop.
To help stabilize the currency, the Nigerian National Petroleum Limited secured a $3 billion emergency loan on Wednesday.
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