Market News
Naira Strengthens Further To N1,278.58/$1 On Official Market - NEW TELEGRAPH
The naira appreciated further against the dollar on the official market the Investors and Exporters’ (I&E) window on Tuesday, closing at N1,278.58/$1, compared with N1,309.39/$1 last Thursday, data published by FMDQ Group shows. Similarly, the local currency strengthened to N1,250 per dollar at the parallel market on Tuesday, compared with N1,280 per dollar on Friday.
Analysts attribute the naira’s recovery on the official market to the Central Bank of Nigeria’s (CBN) decision to step up monetary policy tightening by increasing the benchmark interest rate by 200 basis points to 24.75 per cent last Tuesday.
Bloomberg reported last Friday that foreign investors believe that increased tightening by the apex bank will lead to further naira appreciation on the parallel market. According to forex dealers, the regulator’s announcement last Monday that it would sell $10,000 to each Bureau De Change (BDC) at the rate of N1,251/$1 is bolstering the naira on the parallel market.
