Naira Gains Significantly to N535/$1 on Black Market as CBN Forex Policies Scores a Major Point

Nairametrics can confirm that the exchange rate between the naira and the US dollar has seen a massive rise from 570 N/1 to N535/$1 on the parallel market.

This is according to information obtained by Nairametrics from BDC operators across Nigeria.

Nairametrics reported about a month ago that the exchange rate has stabilized since the CBN MPR meeting on September 17, 2021, as the central bank accused abokiFX of manipulating the currency rate. On that day, the exchange rate closed at N564/1 and rose to N577/$1 a few days later, but has since sold between N570-N575/$. However, Nairametrics was unable to confirm that the consumption at that time was related to abokiFX’s decision to stop reporting daily prices.

Why do you value the naira?

Nairametrics has interviewed some of the major players in the forex market to find out the reason for the recent rally.

Lucky F. Agana, Managing Director of Gulkay Integration Services, said that Naira’s appreciation is directly related to CBN’s intervention in the market. He said, “The Central Bank of Nigeria has pushed more dollars into the market and demand has fallen dramatically, which is the reason for the appreciation of the naira.”

He also mentioned that the market only reacts to the foreign exchange policy of the major bank.

“CBN is doing its best to stabilize Naira and it is up and running, there is a lot of supply but less demand for dollars,” he added.

Abdullah, a BDC operator who spoke to Nairametrics, said eNaira may have played a role in reducing demand for dollars in the market.

“e-Naira has reduced the appetite of Nigerians to buy dollars because with the digital currency, they can now withdraw dollars at official rates anywhere in the world,” He said.

Because the exchange rate is simply a reflection of the demand and supply of a currency. It is safe to say that the appreciation of the naira is related to the foreign exchange supply policy of the major bank.

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