“No More N1k/$:’ CBN Sets New Exchange Rate, Inflation Targets For Nigeria as Naira Crashes
- The Central Bank of Nigeria has projected a new naira exchange rate to the dollar
- The CBN governor, Olayemi Cardoso, said the bank expects the exchange rate and inflation to thaw in the coming year
- Cardoso said this as the naira crashed to N1,260 per dollar at the parallel market on Thursday, November 14, 2023
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The Central Bank of Nigeria (CBN) declared on Thursday, November 15, 2023, in Abuja that the rising exchange rates in Nigeria will reduce in 2024.
The bank also forecasted less earnings from oil exports in the 2024 fiscal year, declaring that total trade from the Nigerian Forex market stood at N18.804 billion in Q3 of 2023.
Source: UGC
Cardoso projects low oil earnings in 2024
Olayemi Cardoso, the CBN Governor, disclosed this during his presentation to the National Assembly Joint Committee on Banking, Insurance, and Other Financial Institutions.
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The CBN boss explained that the outlook for Nigeria’s economy in the coming year is positive as both inflation and exchange rates would resist fluctuating pressures and eventually stabilize.
He told the committee that the exchange rate unification in June 2023 brought a new approach to FX management, reducing arbitrage, rent-seeking behaviours, and speculation in the FX market.
“The policy aims at creating a market where the demand and supply of foreign exchange determine the exchange rate.
The Nation reports that Cardoso said the bank expects less revenue from oil due to a production limit projection of 1.78mbpd in 2024, stating that the OPEC-approved quota for Nigeria is 1.8mbpd, higher than the 2024 budget assumption.
Naira plunges in the black market
Cardoso’s statement comes as the Nigerian currency plunged to N1,260 per dollar in the black market on Thursday, November 14, 2023.
The plunge comes as buyers flooded the black market, searching for the US greenback following strict orders imposed by CBN on banks for currency forex trade.
However, the naira recovered marginally in the official exchange rate market, trading at N901.41 on Thursday, November 14, 2023, from N904.65 to a dollar it traded on Wednesday, November 13, 2023.
Data from the Nigeria Autonomous Foreign Exchange Market (NAFEM) shows an intraday high of N1,185.10 to a dollar and an intraday day low of N475 per dollar.
No more N1k/$: Naira rises by over N200 against the dollar, nears Tinubu’s govt exchange rate target
Legit.ng reported that Nigerian currency improved against the US Dollar on Monday, December 11, 2023, after falling to a record low at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Data from FMDQ securities showed that the Naira closed on Monday at N864.29 to one dollar at the official market.
The Monday closing exchange rate represents a 27.16% increase or a gain of N234.76 from the all-time low of N1099.05/$ recorded last Friday, December 8, 2023.
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Source: Legit.ng
