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| Naira rises again in black market trading |
On the official foreign exchange window, the naira closed at N1,530.26 per dollar, a small gain from last week’s N1,535.
Analysts say fresh dollar inflows and calmer dollar demand drove the gain. They note recent Central Bank interventions have eased scarcity.
A senior dealer at a Lagos bureau de change said traders sold more greenbacks today. He said that dented black-market premiums and helped the naira firm up.
Economists point to a recent $50 million CBN sale to banks. It curbed extreme price swings on the official market.
Critics say gains are fragile. They highlight that tight liquidity can quickly reverse gains. They urge the CBN to sustain support to avoid disorderly moves.
Manufacturers welcome the firmer naira. They say it will lower costs of imported inputs. Lower input costs may ease inflationary pressure in coming weeks.
Exporters warn that a stronger naira could hurt dollar earnings. They call for balanced policy. They want a rate that protects exporters and eases import costs.
Investors reacted positively. The equity market closed higher today as traders grew hopeful. Banking stocks led gains on expectations of stronger margins.
Going forward, experts will watch oil inflows. Higher crude receipts may boost reserves and support the naira. They will also track global dollar trends.
Retail consumers found slight relief. Bureau de change queues shortened in Lagos as rates became more predictable. Some shoppers rushed to buy dollars ahead of weekend travel.
Household and business survey data out next week may show lower foreign-cost pressure. Lower costs could feed into cheaper goods and services.
Policymakers face trade-off. They must keep the naira stable without draining reserves. They need clear communication to anchor expectations.
Constructive debate can help. Stakeholders should share ideas on balancing forex supply and reserve use. Open discussion may yield better policies.
The CBN has tools beyond spot sales. It can adjust interest rates or tweak reserve requirements. Experts say using a mix of tools works best.
Bank executives stress that market confidence drives stability. They call on the CBN to publish regular data on its interventions. Transparency can build trust.
Small businesses welcome today’s move. They say it will cut some costs on imported raw materials. That may slow consumer price gains.
At home, traders in Kano and Port Harcourt reported similar rates. They saw the naira firm at around N1,545. This suggests a nationwide trend.
Internationally, Nigeria’s rate still lags comparable emerging markets. But today’s gain narrows that gap. It could improve Nigeria’s investment appeal.
In sum, the naira’s rise to N1,545 in the parallel market shows that targeted interventions can work. Keeping gains will require steady policy and open dialogue among all players.