Naira Continues Appreciation At Official Market

The Nigerian naira has continued to appreciate at the official market for the third day of the week.

Data on the Nigeria Foreign Exchange Market (NFEM) rate, published by the Central Bank of Nigeria (CBN) show that the local currency exchanged N1,584.49 per dollar on Wednesday, 21 May, against N1,590.45 per dollar on Tuesday.

This means the naira gained N5.96 on a day-on-day basis against the greenback.

The naira had opened the week with a slight appreciation of N0.04, to N1,598.68 on Monday, 19 May, from N1,598.72 recorded on Friday, 16 May. On Tuesday, the naira strengthened to N1,590.45, gaining N8.23 against the previous day’s rate.

The CBN data indicate that the naira traded between N1,590 and N1,583 per dollar on Wednesday.

At the black market, the naira also appreciated by N5 to N1,625 per dollar on Wednesday against N1,630 on Tuesday.

Prime Business Africa reports that the naira has been oscillating between N1,630 and N1,620 at the black market since the week began.

The Central Bank of Nigeria (CBN) has continued to implement reforms aimed at bringing down the high exchange rate and stabilizing the naira.

In his remarks at the end of the 300th Monetary Policy Committee (MPC) meeting on Tuesday, CBN Governor, Dr Olayemi Cardoso, said the naira is stable and currently a more competitive payment system for trade across the West African region.

He said that given the relative stability in the foreign exchange market, MPC members urged the apex bank to sustain the implementation of the ongoing reforms to further boost the economy.

The CBN has been intervening in the market to boost liquidity and meet daily demands by corporates and individuals seeking FX for various needs.

Analysts have continued to advise that the only sustainable way of increasing and sustaining the value of the naira is scaling up domestic production across sectors to increase exports and foreign exchange earnings.