At the end of trade on Monday, the naira was worth N1,136/$ on the official market and N1,050/$ on the parallel market, continuing its recent upward trend vs the US dollar.
This occurred as traders projected that before the week was out, the dollar would drop to less than N1,000.
Data from the FMDQ Exchange, a platform that manages the Nigerian Autonomous Foreign Exchange Market, showed that on Monday, the naira increased by 6.1%, or N69, at the official foreign exchange market, from N1,205/$ on Friday to N1,136/$.
From $281.34 million on Friday to $251.60 million on Monday, the overall daily turnover decreased little.
The dollar was quoted on the spot at N1,000 on Monday, greater than the N1,100 reported on Friday, meaning that the intraday low increased by N100/$1.
The Central Bank of Nigeria issued a number of foreign exchange instructions with the goal of stabilising the naira, and the improved rate came after them. As promised by CBN governor Olayemi Cardoso, the apex bank last month said that it had successfully settled all legitimate foreign exchange backlogs, including $7 billion in inherited claims.
The FMDQ data also showed that total inflows into the NAFEM rose to $3.75 billion from $2.64 billion in February, a 41.7% increase and the highest level since March 2019 ($6.07 billion).
In preparation for selling $15.88 million to 1,588 qualified Bureau De Charge operators, the Apex Bank last week evaluated the exchange rate for these operators, bringing it down from N1,251/$1.
The CBN increased its benchmark interest rate, also known as the Monetary Policy Rate, by 200 basis points to 24.75 percent last month from 22.75 percent in February 2024 as part of efforts to rein in inflation and support the naira.
Afrinvest analysts stated, “We expect the naira to continue strengthening as the CBN intensifies efforts to bolster liquidity in the market.”
Currency dealers at the well-known Wuse Zone 4 market spoke loudly about the naira rates on the illegal market, emphasising that they were no longer in business.
