On a turbulent Friday morning, the foreign exchange market felt the heat as the Nigerian naira plummeted to N1,049 against the US dollar on the black market.
This unsettling development came hot on the heels of the Central Bank of Nigeria’s (CBN) decision to lift forex restrictions on 43 imported items.
During the morning trading session, the naira lost 0.86 percent or N9 of its value to N1,040 on the black market.
However, at the Investor’ and Exporters’ (I&E) forex window, the naira showed resilience, appreciating by 2.27 percent.
The US dollar traded at N759.20 on Thursday, a significant improvement from N776.80 on Wednesday and even stronger than the N765.83 exchange rate on Tuesday as reported by data from the FMDQ.
Willing buyers and sellers played a cautious game with the dollar, quoting rates at N799.90 as the highest bid and N475 as the lowest bid.
The CBN reiterated its commitment to promoting market-driven exchange rates, emphasizing that rates should be referenced from recognized platforms to ensure transparency and credibility.
The central bank also vowed to bolster liquidity in the Nigerian Foreign Exchange Market through interventions, which would gradually decrease as market liquidity improves.
These market developments indicate a significant shift in the foreign exchange landscape, and market participants are closely watching how these changes will impact Nigeria’s economy.
