-Naira appreciates against the dollar at N372 per $1
-Previous rates was N375/$1
-CBN has reportedly injected $5 billion dollars into the foreign exchange market since early February
The Nigerian Naira continues to appreciate against the Dollar at N372 in the parallel market, also called Black market. This is as a result of interventions by the CBN as they continue to pump in the dollar into the foreign exchange market.
Once the local currency also appreciated to N410 against Euro and N480 against Pound from the previous rates of N420 and N485 respectively.
The recent gain has seen the local currency move closer to converge with the official market rate of N305.55. This comes even as the CBN continue to make steady interventions at the foreign exchange market. It was gathered that since February, when the local currency dropped to a record low of N520/$1, the CBN has injected more than $5 billion into the foreign exchange market.
CBN Governor Godwin Emefiele recalled about three months ago, the local currency was trading at above N500 to the dollar on the parallel market, but has appreciated to between N370 and N375/$.
He described this as a significant achievement. Emefiele also noted that the monetary authorities would however prefer a convergence that would head southwards rather than northwards. “We would prefer a convergence that will significantly head southwards, than a convergence that will go northwards.
The fact that we have seen a convergence in the southward direction gives us a lot of hope that things are working in the right direction,” he said.
He also added: “I have said it and I will repeat myself that the interventions will be more vigorous than before to underscore the fact that we are determined to ensure that the Nigerian economy recovers. By making sure that foreign exchange is being made available to operators of the economy to conduct their businesses.”
With the appreciation of the Naira against the dollar, is the current administration of President Buhari moving forward?