The official exchange rate between the Naira and the Dollar witnessed a notable increase of 7.7% on Friday, closing the week at N1,142/$1. This closing rate marks the highest level in over 10 weeks, signalling the positive impact of Central Bank policies on the local currency.
It appears that the exchange rate is approaching the sub-N1,000 target, which many believe is the Central Bank’s desired rate. Reports indicate that the apex bank aims for an exchange rate below N1,000/$1, indicating that the local currency is undervalued in the short to medium term.
In a recent development, the Central Bank issued a circular to Bureau De Change operators (BDCs), informing them of the sale of $10,000 to each BDC at a rate of N1,101/$1.
Data from FMDQ, the official platform for trading foreign exchange, reveals that the official rate closed at N1,142/$1, marking a 7.7% gain compared to the previous rate of N1,230.61/$1. The intra-day high and low were recorded at N1,265/$1 and N1,100/$1, respectively, indicating some of the best figures in the last three months. The daily turnover reached $281.3 million, the highest in about a week, driven by continued Central Bank interventions stimulating market activities.
The benchmark NAFEX rate stood at N1,239.88/$1, expected to reflect the closing rates in the coming days. Meanwhile, the black market exchange rate was around N1,150/$1, as Nigerians resumed work after the Sallah break.
The significant improvement in the official exchange rate at FMDQ demonstrates robust intervention by the Central Bank, contributing to a healthier positioning of the Naira against the Dollar.
