The Nigerian naira may be on its way to recover against the dollar following recent announcements by the FG.
The Nigerian naira exchanged for N460 to a dollar at the parallel market on Monday. This was the same exchange rate that was recorded on Friday last week
The exchange rate on the I&E window continued with its positive performance as it appreciated on Monday, closing at N386 to a dollar, compared to the N386.33 to a dollar that was reported on Friday, June 26, representing a 33 kobo gain.
The opening indicative rate was N386.86 to a dollar for Monday. This represents a loss of 50 kobo when compared to the N386.36 opening rate recorded on Friday.
Nigeria continues to maintain multiple exchange rates comprising the CBN official rate, the BDC rates, and the NAFEX (I&E window).
However, the government is mulling unifying the multiple exchange rates in a bid to increase the amount available for state governments to share.
According to a report by Nairametrics, the stability of the exchange rate in the foreign exchange market can be attributed to a relative drop in demand for the dollar and improvement in forex liquidity. There still appears to be some uncertainty in the foreign exchange market as it is still not clear when the Central Bank of Nigeria (CBN) will resume sales of dollars to Bureau De Change Operators (BDCs).
The planned opening of the airports for flight operations by the federal government will act as a boost to the CBN’s intervention in the BDC segment of the market.
The World Bank had also applauded the CBN’s plan to unify its multiple exchange rate as that will help attract foreign investment to boost sustainable economic recovery and also support the various reforms being introduced by the government.