For the first time in seven months, the dollar fell below the psychological N400 barrier, when the greenback traded at N399 to the dollar in Lagos and exchanged at N395 in Abuja, lower than N410 at which it traded on Tuesday.

With the gains made by the local currency in the last five weeks, the naira inched closer to one of the Central Bank of Nigeria’s (CBN) key foreign exchange policy objectives of an exchange rate convergence.

The naira trades for N375 to the greenback for invisibles and at N307 to the dollar on the FX interbank market, the official window for manufacturers and importers of raw materials eligible to buy FX from this segment of the market.

The last time the naira traded at between N395 and N400 to the dollar on the parallel market was in August 2016.

The significant gains made by the naira on the parallel market, according to market analysts, was a reflection of the improved confidence in the FX market, following the sustained dollar interventions by the CBN since last month.

One analyst also attributed the gains made by naira to the Bureau de Change (BDC) operators that are awash with dollars and with little or no customers to patronise them.

He said several retail customers who used to resort to the BDCs (which realistically fund the parallel market) to fund invisible transactions now get to buy dollars at a lower rate from the banks.

“The BDCs are awash with cash. Remember that the central bank sold about $200,000 to each BDC at some point and they had also bought dollars at high rates which they hoarded, thinking that the naira would remain in a free fall.

“But with the CBN’s intervention, they are stuck with loads of dollars and little or no customers, so they have stopped buying dollars and are looking for avenues to offload what they bought at ridiculously high rates.

“Essentially, the speculative attacks on the naira has come back to haunt them and they’ve got their fingers burnt,” he said.

In all, the central bank has auctioned a total of $1.895 billion through forward sales, as well as targeted intervention for invisibles.

This amount does not include its daily intervention of $1.5 million on the interbank market.

The CBN Governor, Mr. Godwin Emefiele, on Tuesday expressed optimism about the convergence of the FX rates on the official and parallel markets, stating that the gains made by the naira against the greenback in the last five weeks was not a fluke.

Emefiele said he was happy that the central bank’s intervention was yielding positive results.

“I am happy, indeed very gratified, that the interventions have been positive, we have seen the rates now converging and we are strongly optimistic that the rates will converge further.

“In terms of sustainability, I think it’s important for us to say that the foreign reserves at this time are still trending upwards to almost $31 billion as I speak with you.

“And the fact that we have done this consistently for close to five weeks, should tell everybody or those who doubt the strength of the central bank to sustain this policy,” he had said after the meeting of the Monetary Policy Committee (MPC).

But an analyst at Ecobank Nigeria, Mr. Kunle Ezun, who welcomed the development in the FX market, pointed out that achieving a convergence between the official (interbank rate) and parallel market rate would be a more onerous task.

“For us to have a convergence between the interbank and parallel market, it would require the CBN to devalue the official exchange rate to about N350 to the dollar.

“Without that, I don’t see how the official and parallel market rates can converge. Maybe what the CBN governor was talking about is achieving a convergence between the parallel market rate and the rate for invisibles, which is N375 to the dollar.

“But what the CBN has done in the last one month has really helped the parallel market rate. But we need to see improved liquidity on the interbank market,” Ezun said in a phone chat with THISDAY.

https://www.thisdaylive.com/index.php/2017/03/23/dollar-drops-below-n400-for-first-time-in-seven-months/

Tell me more when you have successfully returned the dollar rate to what it was at the inception of "change."

Wow

Cc: Reno O'fuckery.

Reno and his slaves right now.. .

for those who will be troubled by the news

kahal29:

“In terms of sustainability, I think it’s important for us to say that the foreign reserves at this time are still trending upwards to almost $31 billion as I speak with you.

This is the most interesting part. Hope for more

thank you jesus...dey should keep doing whatever they are doing to bring it down to 150...another thing is d price of goods dey ought to b dropping too

Children of Hatred will still twist the narratives by telling us how the policy is not sustainable and blablablablablabla.


Speculators and hoarders and looters --- how market? Your wealth has dwindled from 520 to less than 400/$ right in your selfish eyes.

CBN please keep driving the Naira towards 300. As long as Nigeria is selling Crude Oil, it is very sustainable, while our Foreign Reserve is also increasing gradually. Bad news to haters.

Good news

SuperS1Panther:
Children of Hatred will still twist the narratives by telling us how the policy is not sustainable and blablablablablabla.


Speculators and hoarders and looters --- how market? Your wealth has dwindled from 520 to less than 400/$ right in your selfish eyes.

CBN please keep driving the Naira towards 300. As long as Nigeria is selling Crude Oil, it is very sustainable, while our Foreign Reserve is also increasing gradually. Bad news to haters.

They keep peeping in and disappearing through the back door without leaving a comment. No doubt they are butt hurt by this news.

Hopefully the momentum will be sustained and with time, if greed permits our market men and women, we'd start seeing a corresponding drop in the prices of goods.

Some analysts predicted we'd be outta the woods fourth quarter of the year, perhaps we just might before then..

God bless team PMB/PYO.

Really unfortunate to be a red_mud descendant of shuku alabiabia at this point in time



Make una do fast!!!!

this is interesting

Good news..hope it falls further to at least 120# for 1$

The foreign reserves is growing, the Naira is getting stronger. Another good news to start the day.

Good Morning house.

omenkaLives:
They keep peeping in and disappearing through the back door without leaving a comment. No doubt they are butt hurt by this news.

Hopefully the momentum will be sustained and with time, if greed permits our market men and women, we'd start seeing a corresponding drop in the prices of goods.

Some analysts predicted we'd be outta the woods fourth quarter of the year, perhaps we just might before then..

God bless team PMB/PYO.

The resultant effect will be felt in daily market by 3-4th week in April, when traders are re-stocking their outlets. This will be a great relief for Nigerians.

By and large, we have successfully reverse the negative growth decline, it is now left for us to grow the economy. The availability of FX at a reduced price will be a major driver of the economy and Q2 should be better than Q1.

Good news to most but bad news to some

SuperS1Panther:
Children of Hatred will still twist the narratives by telling us how the policy is not sustainable and blablablablablabla.


Speculators and hoarders and looters --- how market? Your wealth has dwindled from 520 to less than 400/$ right in your selfish eyes.

CBN please keep driving the Naira towards 300. As long as Nigeria is selling Crude Oil, it is very sustainable, while our Foreign Reserve is also increasing gradually. Bad news to haters.

I am also excited about the news but have u checked the latest news that our reserve which fell a bit yesterday and oil price fell below $50 bench mark due to oil glut in the market? I am not an enemy of progress but I don't know what will happen in the next coming days but the CEO of Cowry Asset Management (Mr. Johnson Chukwu) said we should not panic yet. Google or check online newspaper for more information. Though u can read the links below FYI.

http://www.newsflashng.com/nigerias-external-reserves-drop-first-time-since-december/

http://www.telegraph.co.uk/business/2017/03/22/oil-price-drops-50-first-time-since-opec-deal/

SuperS1Panther:


The resultant effect will be felt in daily market by 3-4th week in April, when traders are re-stocking their outlets. This will be a great relief for Nigerians.

By and large, we have successfully reverse the negative growth decline, it is now left for us to grow the economy. The availability of FX at a reduced price will be a major driver of the economy and Q2 should be better than Q1.

You are right if the sustainability continues but then we are too greedy in Nigeria. Yes traders will restock but will the price commensurate with the currency appreciation? Our price regulation policies in market is still poor as retailers want to enjoy exorbitant profit

wristbangle:


I am also excited about the news but have u checked the latest news that our reserve which fell a bit yesterday and oil price fell below $50 bench mark due to oil glut in the market? I am not an enemy of progress but I don't know what will happen in the next coming days but chairman of Apex bank said we should not panic yet. Google or check online newspaper for more information

As long as oil price is above the budget benchmark we are safe, with th right volume of output which has been good in the last couple of weeks, due to FG engagement of ND leadership.

Thanks for your sincere concern.

You are right if the sustainability continues but then we are too greedy in Nigeria. Yes trader will restock but will the price commensurate with the appreciation of the currency? Our price regulation policies in market is still poor as retailers want to enjoy exorbitant profit

Competition will force the prices down naturally, except there is powerful cabal that can fix the price of all items, which is not too feasible in this case.

When will it be 197 to the dollar and inflation drop to under 10%? If this yeye govt achieve that by 2019, we will forgive them while sending them away.

ojibole:
thank you jesus...dey should keep doing whatever they are doing to bring it down to 150...another thing is d price of goods dey ought to b dropping too

It may not drop easily like that because of price stickiness called price sticky theory in economics meaning its easy for prices of goods and services to increase than to fall.

Isn't it time for us to celebrate this beautiful woman?



The so-called polytechnic graduate cleaning up the rot madam Phi-LIP-ina aka Eteyemi from Havard caused

Omo wa na ni

Buhari please return it back to what Jonathan left it at least

tuniski:
When will it be 197 to the dollar and inflation drop to under 10%? If this yeye govt achieve that by 2019, we will forgive them while sending them away.

Na this kind news dey scratch una for body. omo Alabiabia

If to say na Yoruba related news, una for don dey share yoghurt and gala

This is a good news, we are gradually getting there

But PMB is back na

If Naira fit rise against so many odds, who are we?

#Baba2019

Hallelujah ...i just pray by next week we'll be hearing N389 to a dollar, amen.

This is really a good news I must say

ok

Can banks increase their international limit already? Dollar is getting okay and can someone help with banks that accepts Paypal.