BREAKING: Naira on the march to below N1,000/$1 as official exchange rate close at N1,142/$1

BREAKING: Naira on the march to below N1,000/$1 as official exchange rate close at N1,142/$1

The exchange rate between the Naira and the Dollar at the official window rose by 7.7% on Friday to close the week at N1,142/$1.

This marks the highest closing rate between the Naira and the Dollar in over 10 weeks, as Central Bank policies continue to have a positive impact on the local currency.

The exchange rate seems to be nearing the sub-N1,000 target, which many believe is the preferred rate for the Central Bank.

Several reports reaching Nairametrics also suggest that the apex bank is targeting an exchange rate below N1,000/$1, indicating that it believes the local currency remains undervalued in the short to medium term.

Last week, Nairametrics reported that the Central Bank issued a circular to Bureau De Change operators (BDCs), informing them of the sale of $10,000 to each BDC at a rate of N1,101/$1.

What the data is saying

Data tracked from FMDQ, where the exchange rate is officially traded, indicates that the official rate closed at N1,142/$1, representing a 7.7% gain against the previous exchange rate of N1,230.61/$1.

The intra-day high and low recorded during the day were N1,265/$1 and N1,100/$1, respectively, marking some of the best figures in the last three months.
The daily turnover recorded during the day was $281.3 million, the highest in about a week, as Central Bank interventions continue to spur market activities.
The benchmark NAFEX rate was referenced at N1,239.88/$1 and is expected to reflect the closing rates in the next few days.
Nairametrics findings also suggest the black market exchange rate was quoted at around N1,150/$1 as Nigerians returned to work from the Sallah break.
Nairametrics expects other rates, such as customs duties, to strengthen in line with the closing rates.

The significant improvement in the official exchange rate at the FMDQ reflects a robust intervention by the Central Bank, resulting in a healthier positioning of the Naira against the Dollar.

 

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Full Story: https://nairametrics.com/2024/04/12/breaking-naira-on-the-march-to-below-n1000-1-as-official-exchange-rate-close-at-n1142-1/
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