Naira strengthens as dollar influx reaches $7 billion.

Naira demonstrated resilience, as it strengthens to N1,390 per dollar in the official market. Simultaneously, it maintained stability at 1,340/$ in the parallel market, commonly known as the black market.

Data obtained from the FMDQ Security Exchange highlights a notable improvement in liquidity within the forex market, with transactions totaling $4.7 billion recorded in March. However, April saw a significant decline of 51% in FX sales, totaling $2.5 billion, coinciding with the observed depreciation of the naira.

At different forums, Governor Olayemi Cardoso of the Central Bank of Nigeria reiterated the crucial necessity of attracting inflows to uphold liquidity in the foreign exchange market and stabilize exchange rates. He stressed the significance of exchange rate management in mitigating inflationary pressures and securing enduring economic growth and price stability.

Governor Olayemi Cardoso underscored that neglecting to mitigate inflationary pressures through exchange rate mechanisms could jeopardize not just price stability but also long-term economic growth.

Bureau De Change operators in Wuse Zone 4 reported a buying rate of N1,310 and a selling rate of N1,340, with a profit margin of N30. Despite fluctuations, the exchange rate remained unchanged from Monday, indicating a semblance of stability within the market.

According to Malam Yahu, a trader, the naira stayed consistent at N1,340, mirroring Monday’s rate. He mentioned that their purchase price stands at N1,310, yielding a profit margin of N30. Yahu attributed the stagnant rate to market conditions, expressing anticipation for potential changes in the coming days.

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