CBN Policies Working as Exchange Rate Sees Highest Gain in 6 Weeks
The currency exchange rate in between the Naira and the United States Dollar got 1.52% to close at N1,431/$ on Friday, March 22, 2024, continuing an upward pattern that has actually lasted for 7 successive days. According to information from the FMDQOTC, the Naira’s rally can be credited to the Central Bank of Nigeria’s current interventions and policies.
The Naira has actually now gotten over 12% in one week, recommending the reserve bank’s policies, executed strongly given that February, are starting to reveal success.
The report exposed that the currency exchange rate closed at N1,431/$1, the very best rate because February 5th when it closed at N1419.86/$1
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According to the FMDQ, the Naira taped an intra-day low and high of N1,468/$1 and N1,301/$1 respectively, while the NAFEX rate is presently N1,381.35/$1.
Daily turnover was $199.7 million culminating in an overall turnover of $1 billion today alone recommending that enhanced liquidity is now been experienced in the market.
Nigeria’s external reserve position is presently $34.3 billion and is anticipated to increase to $35 billion according to forecasts from the peak bank.
On the parallel market where the currency exchange rate trades unofficially, traders still priced quote in between N1400-N1480/$1 depending upon who is purchasing or offering.
The UK Pounds likewise fell listed below N2000/ ₤ 1 in the parallel market.
The Central Bank of Nigeria’s (CBN) current policies have actually played a critical function in the fortifying of the Naira versus the dollar, a pattern highlighted by the substantial gratitude in its worth over the previous week.