No more N1,246: Man Breaks Silence as Naira Gains from CBN's New Rate Quotes to BDC

• A Nigerian man celebrated the naira’s appreciation against the dollar but observed that food prices had not decreased
• In a tweet, he remarked on the naira’s substantial gains, yet noted that food prices were still soaring
• He speculated whether the persistence of high food prices was due to marketers not having fully sold off old stock

A Nigerian man expressed his mixed feelings as he celebrated the naira’s rise against the dollar, yet he pointed out that food prices remained stubbornly high.

He took to Twitter to discuss the naira’s significant recovery but lamented that the cost of food continued to escalate, defying expectations.

He, @konigtimz, mused over the possibility that traders still had old stock to sell, which might be causing the sustained increase in food prices despite the stronger naira.

Read also

Naira becomes world’s best-performing currency, continues gain after 3 days to near N1,000/$1

See his X post:

AbdulFatai Khan, a financial analyst, looked at the recent surge of the naira in the FX market:

“The naira has experienced a dramatic gain in the past weeks in a way that has surprised many people, but it is also a pointer to what is possible when there is commitment and a sense of purpose. I see it gaining more in the coming days and hopefully, this can be sustained.”

Cardoso policy on naira

CBN Governor Olayemi Cardoso’s policy on foreign exchange (FX) in Nigeria is focused on stabilizing the naira, fostering sustainable economic growth, and achieving price stability.

He has emphasized the importance of evidence-based monetary policy and has introduced reforms to address challenges in the FX market.

These reforms aim to create a transparent system where foreign exchange can be accessed easily without personal connections in banks, and are part of broader efforts to stabilize the exchange rate of the naira and reduce interest rates to facilitate borrowing and investments.

Read also

Minister hints on electricity tariff decrease when naira exchange rate improves to N1,000/$1

Why CBN is getting it right

Meanwhile, Legit.ng earlier reported that the Nigerian Naira has demonstrated a notable appreciation against the US Dollar within the foreign exchange arena.

Insights into this encouraging shift have been illuminated by a Nigerian individual on X (previously known as Twitter). According to his analysis, the Central Bank of Nigeria (CBN) has implemented a series of tactical measures aimed at bolstering the Naira’s value.

A key move by the CBN includes reducing the dollar’s cost to align with, or even undercut, the figures quoted in the parallel market, thereby fortifying the Naira’s position. He also mentioned other areas that has helped Nigerian economy grow in terms of naira to dollar exchange.

Source: Legit.ng