CBN Policies Working as Exchange Rate Sees Highest Gain in 6 Weeks
The exchange rate between the Naira and the US Dollar gained 1.52% to close at N1,431/$ on Friday, March 22, 2024, continuing an upward trend that has lasted for seven consecutive days. According to data from the FMDQOTC, the Naira’s rally can be attributed to the Central Bank of Nigeria’s recent interventions and policies.
The Naira has now gained over 12% in one week, suggesting the central bank’s policies, implemented aggressively since February, are beginning to show success.
The report revealed that the exchange rate closed at N1,431/$1, the best rate since February 5th when it closed at N1419.86/$1
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According to the FMDQ, the Naira recorded an intra-day high and low of N1,468/$1 and N1,301/$1 respectively, while the NAFEX rate is currently N1,381.35/$1.
Daily turnover was $199.7 million culminating in a total turnover of $1 billion this week alone suggesting that improved liquidity is now been experienced in the market.
Nigeria’s external reserve position is currently $34.3 billion and is expected to rise to $35 billion according to projections from the apex bank.
On the parallel market where the exchange rate trades unofficially, traders still quoted between N1400-N1480/$1 depending on who is buying or selling.
The UK Pounds also fell below N2000/£1 in the parallel market.
The Central Bank of Nigeria’s (CBN) recent policies have played a pivotal role in the strengthening of the Naira against the dollar, a trend highlighted by the significant appreciation in its value over the past week.
