The black market exchange rate for the Dollar to Naira experienced fluctuations on November 12, 2023, with reported buying rates at N1125 and selling rates at N1135, illustrating the ongoing dynamics in the parallel market, commonly known as Aboki fx.
In contrast, the Central Bank of Nigeria (CBN) officially set a buying rate of 964 and a selling rate of 965, reiterating its non-recognition of the parallel market and advising individuals to engage in forex transactions through authorized banks.
The Naira showcased resilience against the US Dollar in the official market, achieving a monthly peak of N780.14/$1. This significant increase of 27.77% from the previous close highlighted the impact of the CBN’s strategic measures, including the clearance of the forex backlog.
Market analysts lauded the CBN’s proactive measures, viewing them as crucial in boosting investor confidence and stabilizing the Naira. Official market data from the NAFEM revealed a substantial uptick, with the Naira gaining N216.61 in a single day, surpassing the previous all-time high.
Despite these official market gains, the parallel forex market experienced a 3.54% depreciation, with peer-to-peer trading quoting rates around ₦1100/$1. This disparity underscores the inherent volatility and diversity within the forex landscape.
The CBN’s initiative to clear the backlog of foreign exchange forward contracts emerged as a driving force behind the Naira’s recovery, aiming to alleviate pressure on the business sector and stimulate economic activities. However, the day’s trading witnessed significant volatility, with the Naira oscillating between ₦1096.17/$1 and ₦700.00/$1.
In summary, the performance of the Naira against the Dollar on November 12, 2023, reflects a nuanced interplay of official market gains, parallel market dynamics, and the CBN’s strategic interventions. Observers closely monitor how these factors impact businesses and the broader economic landscape as the forex situation evolves..…CONTINUE.FULL.READING>>>