Naira Hits Strong at Black Market. See Today’s Exchange Rates

0
Dollar to Naira Black Market Exchange Rate Today

The Nigerian Naira Hits Strong at Black Market 

The naira traded at N545 to the dollar on the parallel market over the weekend, maintaining its strongest level since early September 2021. The local currency exchanges at N411.59 to the dollar at the official market.

The drop in dollar demand by importers and other forex users looking for substitutes for imported products and raw materials triggered the naira’s stability.

Hot Jobs 🔥 1. Rano Air Limited Massive Recruitment for OND, HND/BSC Graduates 2. Skyway Aviation Handling Company Plc Management Trainee Programme 2021 For BSC/HND

Read Also : Dollar To Naira Exchange Rate Today Black Market 22 November 2021

According to the Central Bank’s 30-day moving average benchmark, Nigeria’s foreign exchange reserves fell to $41.5 billion this week, a drop of around $100 million.

Murega Mungai, Trading Desk Manager, AZA, global forex dealer, said inflation fell for the seventh month in a row in October, with prices rising by 15.99 per cent compared to 16.63 per cent a month earlier, owing to lower food costs.

“With weaker dollar demand unlikely to change in the coming week (this week), we expect the Naira to remain around the N540 to dollar handle,” he said.

 

The International Monetary Fund (IMF) welcomed steps toward the unification of the exchange rate in response to the naira’s situation but stressed the need for more action.

“While the elimination of the official exchange rate is a positive step, the continued reliance on administrative measures to address forex shortages perpetuates uncertainty and raises the risk of a large and abrupt change in the exchange rate.” The mission advised a move to a unified and market-clearing exchange rate without further delays, taking advantage of favourable global conditions, improving the current account, and robust oil prices,” the IMF said in its Article IV Evaluation report released over the weekend.

It stated that any exchange rate adjustment should be accompanied by clear communications about future exchange rate policy, macroeconomic policies to contain inflation, and structural policies to facilitate new investment to maintain competitiveness.

“Moving even closer to a market-clearing exchange rate will help build foreign exchange buffers by increasing capital inflows.” “Gross reserves remain significantly below the IMF’s recommended adequacy levels, despite the recent allocation of Special Drawing Rights and a successful Eurobond issuance,” it said.

Slow currency reforms and uncertainty about the ability to repatriate foreign funds, according to the IMF, have deterred new capital inflows.

“With a weaker external position than implied by Nigeria’s economic fundamentals and desired policies, a limited export base, and limited capital inflows, the mission recommended preserving foreign exchange reserves through sustainable policies,” the mission said. Nigeria’s capacity to repay the outstanding credit from the 2020 Rapid Financing Instrument (RFI) was deemed adequate by the mission, according to the statement.

Nigeria’s economy is recovering from a historic downturn, according to the Fund. “With the help of policy, rebounding oil prices, and international financial aid, Nigeria exited the recession earlier than expected in the fourth quarter of 2020. In the second quarter, output increased by 5.4 per cent year on year, owing to “base effects from the transportation and trade sectors, as well as continued strong growth in the IT sector,” according to the report.

Manufacturing and the oil sector, on the other hand, remain weak, owing to ongoing foreign exchange shortages as well as security and technical issues.

MORE POSTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.