Naira appreciates to N764.86/$1 as CBN lifts forex restrictions on 43 items

By Sodiq Adelakun

The Naira experienced a slight appreciation to N764.86/$1 at the close of business on Friday following the Central Bank of Nigeria’s announcement of lifting forex restrictions on 43 items.

This positive development was revealed by FMDQ exchange data on Saturday. At the start of Friday, the forex rate stood at N770.16/$1 but closed at N776.8/$1 at the official market, indicating an appreciation from the previous day’s rate of N776.8/$1.

However, the parallel market maintained an unchanged forex rate, with an average exchange rate of N1030/$1.

This development comes as the Central Bank of Nigeria reaffirms its commitment to resolving the forex crisis. In line with this, the apex bank lifted forex restrictions on rice, cement, and 41 other items on Thursday.

The bank explained that this move aims to reduce the demand for forex in the parallel market and achieve a unified forex pricing system.

According to the CBN, the previous restrictions had forced importers to turn to the parallel market, leading to an excess demand for forex and subsequently weakening the parallel-market exchange rate, resulting in price increases.

The lifting of forex restrictions on these items is expected to have a positive impact on the Nigerian economy, as it will promote increased access to forex for businesses and individuals, stabilize the exchange rate, and help control inflation.

The bank said the move would stem the demand for the forex at the parallel market and unify forex pricing.

“The restrictions pushed importers into the parallel market, contributing to the surplus demand for FOREX. This weakened the parallel-market exchange rate, pushing up prices,” CBN stated.