The value of the naira appreciated against the US dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, May 21, 2024.
Data from FMDQ securities showed that the naira improved against the dollar to close at N1,465.68/$1.
Tuesday’s exchange rate is 0.23% or N3.31 compared to the N1,468.99/$1 closing rate on Monday, May 20.
Also, CBN data showed that the naira improved its value against the pound sterling in the official market and the euro.
For the British pound sterling, the naira gained N21.38 to sell at N1,882.47/£1 on Tuesday compared with the N1,903.85/£1 sold on Monday.
While against the euro, it also appreciated by N20.29 to quote at N1,610.16/€1 versus Monday’s rate of N1,630.45/€1.
The naira’s positive performance is due to the increase in the foreign exchange (FX) supply by $106.76 million, or 66.1%, to $268.17 million from $161.41 million.
The naira’s story was similar in the unofficial parallel market, also known as the black market.
Checks by TimesNow.com.ng show that the naira appreciated against the dollar by N10 to trade at N1,470/$1, in contrast to the previous day’s rate of N1,480/$1 by some BDC traders.
After the conclusion of a two-day Monetary Policy Committee (MPC) meeting, Yemi Cardoso, the governor of the Central Bank of Nigeria (CBN), assured Nigerians that investors were beginning to return to the country due to a series of measures the apex bank has taken to sanitize the forex market.
The CBN believes the inflow will be sustained, helping the naira find its true value.
Earlier, TimesNow.com.ng reported that the Central Bank of Nigeria announced that it would stop daily Cash Reserve Requirement (CRR) debits for banks.
The apex bank said it would adopt an updated CRR mechanism intended to facilitate banks’ capacity for planning, monitoring and aligning with records with the CBN.
This was disclosed in a letter addressed to all banks and signed by Adetona Adedeji, the acting director of the banking supervision department.
Proofreading by James Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
