Having opened at N1,130 to the dollar on Monday morning, the value of the naira gained strength midday as traders anticipate another round of dollar sales to Bureau de Change (BDC) operators this week.

By noon on Monday, the naira was selling at N1,000 to the dollar at the parallel market. Last week Monday, the Central Bank of Nigeria (CBN) had offered $15.88 million to BDC operators at N1,101 to the dollar, pushing up the value of the naira on the streets.



The CBN sells dollars to the BDCs at the lower band of rate quoted on the Nigeria Autonomous Foreign Exchange Market (NAFEM). Last week Friday the value of the naira was between N1,265 and N1,100 to the dollar.


In anticipation of another liquidity push out by the apex bank, the value of the naira which opened trading activities on the parallel market at N1,130 to the dollar had firmed up to N1,000 by midday.

This corroborates with the projection of US Bank Goldman Sachs which at the weekend projected that the naira will be trading at N1,000. Goldman Sachs Group Inc, had projected that the naira will be among the best performing currencies in the world.

Having predicted in February that the naira would strengthen to N1,200 per dollar this year, Goldman economists, say they see it potentially advancing beyond that level after a raft of measures by the central bank.


Those included 600 basis points of cumulative interest-rate increases at policy meetings in February and March, as well as other steps to ease the local scarcity of dollars that fanned volatility and forced companies to the parallel market.


Goldman’s Andrew Matheny told Bloomberg Newswire in an interview that “this probably can run further; we would see an extension of the move to 1,000 and maybe even sub-1,000, six weeks have gone by and they’re continuing to hold the line, so that’s encouraging.”

The group maintains its 12-month forecast for the naira at 1,200 per dollar, owing to uncertainty around the ability of the authorities to maintain the reform tempo, though it now sees risks to that upbeat projection.


https://leadership.ng/just-in-naira-hits-n1000-ahead-of-cbn-sale-to-bdcs/

Wake me up when the reserves finish..

FACTs...

TINUBU is the most useless and worthless President in NIGERIAN HISTORY.

AqualinaXYZ:
Breaking news





Inflation under Tinubu hits 65% the worst of all time

AqualinaXYZ:
Breaking news





Inflation under Tinubu hits 65% the worst of all time

Stop breaking rule 8

The exchange rate will be 2000/$ in April in the mud.

Dalohad:
Wake me up when the reserves finish..

When you go com wake up bayi?

Paraman:
When you go com wake up bayi?

Ol boy, you are not an exporting country. All these gra-gra of using forex reserves to defend a worthless currency won't work in the long term. Na just stop-gap measures, not sustainable in the long run.

What I don't understand is how bdc survive on 10k dollars a week from cbn . Its not possible unless they are doing something else

Dalohad:


Ol boy, you are not an exporting country. All these gra-gra of using forex reserves to defend a worthless currency won't work in the long term. Na just stop-gap measures, not sustainable in the long run.

Nigeria exported more than what we imported last year

Dalohad:


Ol boy, you are not an exporting country. All these gra-gra of using forex reserves to defend a worthless currency won't work in the long term. Na just stop-gap measures, not sustainable in the long run.

Much of the FX used to sustain this economy is borrowed. The last time was over $3 billion from Afrexim Bank. Thank God for oil and gas. If not, only God knows how we would have survived.

SoNature:


Much of the FX used to sustain this economy is borrowed. The last time was over $3 billion from Afrexim Bank. Thank God for oil and gas. If not, only God knows how we would have survived.

The FG has gotten just $2 billion plus from afrexim, the FG will get the rest of the money next month.

Dalohad:
Wake me up when the reserves finish..

funniest thing you fit even from there die 😀😀

Your book of lamentation has been opened ...

AqualinaXYZ:
Breaking news





Inflation under Tinubu hits 65% the worst of all time




Una dey hype naira while inflation and prices of goods are getting higher

I am tired of all these naira appreciation when it is non-evident in the prices of goods and services.

AqualinaXYZ:
Una dey hype naira while inflation and prices of goods are getting higher

I don't understand how people will be shouting dollar fall when prices of goods are above the roof?? Dollar is falling & inflation is on the increase!

LIVINGICONREBOR:
I am tired of all these naira appreciation when it is non-evident in the prices of goods and services.

Honestly & it is becoming very frustrating
You need to go to the pharmacy & see how expensive these drugs have become. A drug I bought 8k in march moved to 12k & it is now currently selling at 15k. I come online to see these guys posting dollar fall & i begin to wonder if they are in this country? It's no longer making sense

It's obvious it's being manipulated.

jayce232:

Honestly & it is becoming very frustrating
You need to go to the pharmacy & see how expensive these drugs have become. A drug I bought 8k in march moved to 12k & it is now currently selling at 15k. I come online to see these guys posting dollar fall & i begin to wonder if they are in this country? It's no longer making sense

You can say that again. Nigeria economics never seize to amaze me.

Dollar is falling and the economy keeps nose-diving, where are the economist in the house to educate us, no way on earth you'll defend Tinubu and not look stupid. How come heavy taxing persists despite the dollar fall, and some people will be quick to say stuffs like "greedy traders do this or that".