Naira Gains More Ground Against US Dollar in Official Market As CBN Confirms Next Move

• The Nigerian currency continues its positive performance against the US dollar in the official foreign exchange market
• Data shows that the Naira's value improved again, this time by 1.1% against the US dollar in the NAFEM window
• The Central Bank of Nigeria (CBN) is determined to stabilize the foreign exchange market by boosting supply

Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

The Naira appreciated against the United States Dollar in the official foreign exchange market on Monday, February 5, 2023.

Data from the FMDQ securities showed that the Naira gained 1.1% or N15.67 against the dollar on Monday, closing at N1,419.00/$1 compared to last Friday’s closing value of N1,435.53/$1 on the Nigerian Autonomous Foreign Exchange Market (NAFEM) window.

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The Nigerian currency also appreciated in value against the Pound Sterling in the spot market during the trading day by N57.83, settling at N1,732.88/£1 compared to Friday's rate of N1,790.71/£1.

A similar trend was observed against the Euro, with an improvement of N52.67 to sell for N1,477.98/€1 compared to the previous session’s rate of N1,530.65/€1."

CBN determined to help Naira

The strong performance of the naira follows the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso's revelation that the country has cleared the backlog of FX contracts that have put pressure on the naira.

Cardoso revealed this during a television interview where he also assured that the remaining $2.2 billion would soon be cleared.

Naira to dollar at parralle market

However, in the parallel market, the Naira depreciated against the US Dollar on Monday by N30, selling for N1,440/$1 compared with the preceding session’s N1,410/$1.

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Meanwhile, in the Peer-to-Peer (P2P) segment, the Naira closed at N1,459/$1 on Monday, a drop from last Friday’s exchange rate of N1,409/$1.

CBN governor plans next move for naira

Earlier, Legit.ng reported that the CBN is set to introduce a singular foreign currency (FCY) gateway bank.

This bank will centralise all correspondent banking activities and facilitate international trade and economic activities.

The CBN is also planning to streamline the number of BDC operators in Nigeria, improve the nation's forex inflows and stabilise the Naira.

Source: Legit.ng