Naira appreciates to N1,280/$, as CBN slashes Customs duty rate by 2.9%
…Nigeria implements key reforms to stabilise FX marke
By Sodiq Adelakun
Naira has continued in its upward trajectory, appreciating against the US dollar as it is currently selling at N1,280 on the parallel market, buoyed by recent foreign exchange (FX) policy adjustments by the Central Bank of Nigeria (CBN).
Recall that the latest exchange rate reflects a remarkable gain of 2.34 percent in less than one day, compared to the closing rate of N1,310 observed on Wednesday.
Notably, the naira has surged by 42.58 percent against the dollar since February 20, 2024, when it hit its lowest point of N1,825/$ on the parallel market, commonly referred to as the black market.
The official market also witnessed an uptick in the value of the naira, with the currency rising to N1,300.43 against the dollar.
This increase follows a significant surge in dollar supply, which rose by 69.43 percent on Wednesday. These developments come on the heels of the Central Bank’s decision to raise key interest rates, signaling efforts to stabilise the foreign exchange market and bolster the local currency.
The appreciation of the naira signifies positive sentiment and confidence in the country’s economic policies, with investors and market participants responding favorably to recent measures implemented by the CBN.
As the naira continues to strengthen, stakeholders anticipate enhanced stability in the forex market and improved macroeconomic conditions, which could stimulate investment and economic growth in Nigeria.
The naira has been appreciating against the dollar recently following some foreign exchange reforms by the Central Bank of Nigeria (MPC).
In a bid to enhance stability and transparency in Nigeria’s foreign exchange market, the Central Bank of Nigeria (CBN) has announced a series of key reforms.
These reforms encompass various aspects, including the unification of exchange rate windows, liberalisation of the FX market, and clearance of FX backlog obligations for banks and airlines.
Among the significant measures introduced is the implementation of a Price Verification System (PVS) aimed at ensuring fair pricing mechanisms.
Additionally, the CBN has imposed limits on banks’ Net Open Position and removed the daily cap on remunerable Standing Deposit Facility (SDF), providing more flexibility in liquidity management.
Furthermore, the overhaul of the Bureau De Change (BDC) segment is highlighted, focusing on bolstering stability, transparency, supply, and price discovery within the Nigeria Autonomous Foreign Exchange Market.
In efforts to foster a more efficient market, additional measures include the introduction of a two-way quote system and the elimination of margin limits for International Money Transfer Operator (IMTO) remittances.
Under these reforms, the CBN has sold dollars to Bureau De Change (BDC) operators at a rate of N1,251, with directives for them to sell.
