In a recent revelation, the official foreign exchange market witnessed a substantial influx of $7.3 billion in March and April, marking a notable increase in liquidity. This surge coincided with the Nigerian naira rebounding against the United States dollar, reaching N1,390 per dollar in the official market and maintaining stability at 1,340/$ in the parallel market, commonly known as the black market, on Monday.
Data sourced from the FMDQ Security Exchange indicates a significant uptick in forex sales, with $4.7 billion transacted in March. However, there was a notable 51% month-on-month decrease in FX sales to $2.5 billion in April, aligning with the observed depreciation of the naira during the same period.
Bureau De Change operators at Wuse Zone 4 reported a buying rate of N1,310 and a selling rate of N1,340, yielding a profit margin of N30. This rate remained consistent with figures reported on Monday.
Commenting on the market stability, trader Malam Yahu remarked, “The naira remained as it was on Monday, trading at N1,340. We buy at N1,310 and our profit is just N30. Nothing really caused the stagnant rate. That’s just how the market went today. We wait to see what tomorrow and next.”
In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira experienced a 2.1% appreciation to N1,390 per dollar from N1,419 per dollar recorded on Monday. This appreciation follows a period of depreciation attributed to slowing inflows due to the withdrawal of funds by Foreign Portfolio Investment.
Governor of the Central Bank of Nigeria, Olayemi Cardoso, emphasized the importance of attracting inflows to maintain liquidity and stabilize the exchange rate. He reiterated the role of exchange rate management in addressing inflationary pressures and ensuring both price stability and sustained long-term economic growth.
“Failure to tame inflationary pressure using the exchange rate channel may jeopardize not only price stability but also long-term growth,” Cardoso stated at various forums.