Naira Gains Massive Strength, Exchanges For N900
The value of dollar to naira fell sharply, on Friday, with the local currency exchanging below N1000 in the parallel market.
This is the first time in over a month that the local currency would gain remarkable strength since it exchanged above N1000.
From N1,150 in the parallel market on Thursday, the dollar exchanged for N950 on Friday evening and below in the morning, gaining over N200.
Sources at the Murtala Muhammed International Airport (MMIA), Lagos confirmed to our correspondent that the dollar exchanged for N750-N800 in the morning before appreciating to N950 in the evening.
This happened in the midst of intervention from the Central Bank of Nigeria (CBN), which was said to have started clearing backlog of matured dollar obligations amounting to over $7bn.
The beneficiaries of the CBN remittances were banks and airlines, bolstering expectations among foreign airlines operating in Nigeria.
For instance, the United Arab Emirates (UAE) carrier, Emirates, may soon resume flights to Nigeria as both countries finalise agreements which may see the Arab country lift its visa and work permit bans on Nigerians.
A bureau de change (BDC) operator in Lagos, Mr. Abu Dollar said, “We sell at N950 as I am talking to you. I don’t know what will happen tomorrow. Yesterday was N1,150 but today it has crashed to N950 here.
“Tomorrow I will tell you the market situation. Just call me.”
Another BDC operator at the MMIA simply identified as Mall. Ubaida said, “Dollar this evening we buy it for N900. But in the morning, we bought it for N800. It is coming down because of what the CBN did.”
He, however, advised that the CBN should supply dollars directly to the BDC operators, saying this would further strengthen the value of naira.
