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1 week ago
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- The Nigerian Foreign Exchange marketplace has seen a spike successful request for the US dollars since past week
- This unit has fuelled the naira depreciation, pushing it person to N1,600/$ connected the parallel market
- Recent checks besides amusement that the authoritative complaint and the parallel marketplace rates are increasing apart, raising concerns of arbitrage
Legit.ng journalist Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful concern reporting crossed integer and mainstream media.
Naira seems to person ended the rally, and present the downward inclination is continuing, triggered by expanding request for the dollar.
Despite starting the week astatine an speech complaint of N1,540/$ connected the authoritative market, the naira is present sliding person to N1,600/$ connected the parallel market.
Checks amusement that since Monday, the dollar has traded wrong a scope of N1,550 and N1,590 connected the parallel market.
Source: Getty Images
It present trades astatine N1,585 connected the parallel market, with marketplace pressures pushing it person to N1,600.
Official complaint widens from the parallel market
The Guardian reported that the speech complaint connected the Central Bank of Nigeria’s Nigerian Foreign Exchange Market (NFEM), inactive hovers astir N1,538/$.
This shows a widening quality betwixt the parallel markets and the authoritative marketplace rate, leaving plentifulness of country for FX arbitrage.
Recall that the instauration of the EFEMs successful December 2024 gradually closed the spread betwixt authoritative and parallel marketplace rates.
In February 2025, Legit.ng reported that some marketplace rates had unified astatine N1,500/$, wholly ruling retired possibilities of FX arbitrage.
The caller improvement of a wide quality successful the authoritative and parallel marketplace rates leaves arbitrage gaps that whitethorn beryllium exploited.
Recall that marketplace analysts predicted that the naira would appreciate successful March 2025, but truthful galore things person happened since then.
CBN promises FX marketplace stableness
The Central Bank of Nigeria has expressed its committedness to ensuring stableness successful the FX marketplace and addressing the economical challenges facing Nigeria.
Source: Getty Images
CBN governor, Olayemi Cardoso, gave this reassurance portion playing big to a delegation of 50 scholars from the Harvard Kennedy School (HKS), Harvard Business School, Massachusetts Institute of Technology (MIT), and Stanford University, visiting Nigeria and Ghana arsenic portion of their Africa Trek.
Cardoso noted that the apex slope was signaling advancement successful its effort to curb inflation, and the caller visits from apical executives of JP Morgan, Citibank and the International Monetary Fund (IMF) showed that overseas investors were not oblivious to the moves.
The president of HKSAAN, Adaora Ndukwe, and HKS Nigeria Trek Delegation Lead, Sheffy Kolade, thanked the CBN for hosting the Africa Trek Delegation and demonstrating committedness to prosecute with aboriginal policymakers.
Expert gives reasons for continued naira depreciation
In related news, an economist, Dr. Marcel Okeke, explained wherefore the naira has weakened against the dollar successful caller weeks.
Okeke noted that Dangote Refinery's determination to merchantability its products for dollars has accrued the fig of marketplace players successful request of Foreign exchange.
He added that the CBN interventions whitethorn not beryllium capable to stabilise the naira owed to this accrued demand.
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Source: Legit.ng
