Naira Steadies Against Dollar, Amid Cardoso’s Planned Reform

The pressure on the foreign exchange (FX) market eased on Tuesday as the naira steadied against the United States dollar in the parallel market amid the Central Bank of Nigeria’s Governor, Mr. Olayemi Cardoso’s, reform.

According to Aboki FX, the naira sells for N1,160 on Monday and Tuesday respectively.

Naira Steadies Against Dollar Amid Reform

Also, the volume of United States dollars turnover in the Nigerian Foreign Exchange Market (NAFEM), window rose to $100.06million, on Monday.

The daily forex turnover rose by 32 percent from $75.82million, on Friday, November, 24, 2023 to $100.06million on Monday, November, 27, 2023.

According to the data from NAFEM, the country’s official foreign exchange market, the rise in the daily forex turnover reflected increased FX inflow in the economy on Monday, 27th November, 2023.

According to Data from FMDQ Securities Exchange, the local currency, on Monday, hit an intra-day trading high of N1,130 and a low of N700.

However, the governor of Central Bank of Nigeria (CBN), Olayemi Cardoso, said the apex regulatory bank will introduce a set of new rules and guidelines to achieve exchange rate stability.

He said, “In order to ensure the proper functioning of domestic and foreign currency markets, clear, transparent, and harmonized rules governing market operations are essential. New foreign exchange guidelines and legislation will be developed, and extensive consultations will be conducted with banks and FX market operators before implementing any new requirements.”

According to Cardoso, stabilising the FX market is critical to economic stability in the nation.

“Stabilizing the exchange rate is another critical aspect of our efforts to promote economic stability. I had the privilege of speaking with business owners engaged in international trade.

“They recounted the difficulties of navigating the fluctuations in the exchange rate, which often led to uncertainties and unexpected costs. The volatility in the foreign exchange market disrupted their planning and hindered their ability to make informed business decisions.
“It is imperative that we provide transparency and create a market environment that allows fair determination of exchange rates, ensuring stability for businesses and individuals alike.”

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