The rally the naira had enjoyed since the beginning of the year seems to have ended, perhaps in the short run as the domestic currency falls closer to N1,600/$ at the parallel market.

In the past few days, the currency traded between N1,550 and N1,590. It currently trades around N1,585/$.

According to data obtained from the Central Bank of Nigeria’s Nigerian Foreign Exchange Market (NFEM), it trades around N1,538/$ at the official market.

With this, the difference between the official and unofficial rates is over N40/$, raising concern about the widening market arbitrage.

But the Central Bank of Nigeria (CBN) said it is committed to sustaining the foreign exchange (FX) market stability.

Welcoming a delegation of scholars from the Harvard Kennedy School (HKS) as part of their Africa Trek, which included visits to Ghana and Nigeria, the CBN governor, Yemi Cardoso, admitted that there are indeed challenges confronting the Nigerian economy.

However, he highlighted the progress made in stabilising the market and curbing inflation.

Cardoso noted that recent visits by top executives from JP Morgan, Citi Bank and the International Monetary Fund (IMF) were indicators of growing investors’ confidence in Nigeria’s economy.

“These are individuals who base their decisions on data and trends, not sentiment. Their interest reaffirms that we are on the right path,” he added.

He also reiterated the bank’s commitment to fostering intellectual engagement and policy-driven solutions.

The scholars’ visit to the CBN headquarters in Abuja brought together 50 students from 19 countries, including representatives from the HKS, Harvard Business School, Massachusetts Institute of Technology.


https://guardian.ng/business-services/business/naira-slides-to-n1585-as-cbn-commits-to-fx-stability/