Naira Trades At N430, Gain 3.5% Strength Over Dollars

The value of naira experienced a positive rise on Monday, as it traded for N430 per dollar at the parallel market, generating a positive gain as it closed at N465.

This comes after the central bank of Nigerian (CBN) introduced the sales of foreign exchange to commercial banks for parents wanting to make payment for their children's school fees and small businesses seeking to import essentials required to revamp economic activities.

President Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, said, “The partial lifting of the suspension on forex sales through the CBN announcement on school fees and the SMEs imports funding through the CBN window was what broke the camel’s back and a drive toward flattening the curve in the forex market, and led the naira to gain over 3.5% strength over the dollars from an all high of N470/$ on Wednesday last week to N430/$ at the close of business today (Monday).

“The noticeable frivolous demand that had pervaded the market during the period of the lockdown had been upturned by the lifting of the suspension.

“It is imperative to note that the road to price discovery in the market will be achieved as soon as Bureau de Changes resume operation to a more realistic rate of N405/$ in the month of May,”

He enjoined the CBN to also resume the sales of forex to BDCs and urged the apex bank to keep boosting the value of Naira as well as infant industries.

Isaac Okorafor, Director of Corporate Communications at the CBN said, “with these actions, the CBN wishes to reiterate that it is adequately meeting the needs of all legitimate users, and our continued capacity to do so should not be in doubt.

“There is, therefore, no need for panic by an end-user that could necessitate recourse to illegitimate sources and spike in foreign exchange rates.

“Given this, the bank has ramped up its surveillance of the foreign exchange markets for speculators, smugglers, and other illegal users, and will take decisive actions against anyone/institutions involved in such nefarious activities.”