The Naira sustained its gain momentum at the parallel market on Monday to trade at N750/$1, representing a 0.66% appreciation compared to the N755/$1 it exchanged at during last Friday’s trading session
Some parallel market FX dealers attributed the improved FX rate of the local currency to the increasingly conducive investment environment occasioned by last week’s declaration by President Bola Tinubu to tinker with key monetary policy measures, including the unification of the FX exchange rates, to grow the economy
The Naira maintained its exchange rate against the British Pound Sterling during the day to trade at an average rate of N955/£1, the same rate it traded last Friday.
It also appreciated by a significant 1.83%, reaching an average rate of N805/€1 on June 5th, 2023, compared to N820/€ recorded in the previous day trading session.
Data sourced from the cryptocurrency Peer-to-Peer (P-2-P) Exchange market platform, the Naira marginally depreciated by 0.31% to trade at a minimum of N754.10/$1 on Monday, compared to the N751.75/$1 it traded at the P-2-P exchange market last Friday.
The Central Bank of Nigeria (CBN) has been supplying US dollar to FX traders at both the official window and parallel market for some years now as part of its monetary measures to achieve a stable exchange rate for the Naira over the past years,
However, the apex bank stopped its FX supply to the parallel market early in March 2020 following its findings that some FX dealers were abusing the privilege by engaging in FX round-tripping.
Since then, it has not reversed its decision and this is partly responsible for the huge disparities in the local currency’s FX rate in the official and parallel markets.
