The Nigerian Naira is anticipated to strengthen below N1,000 to the US dollar on the black market next week. This buoyant projection stems from the optimism surrounding the Federal Government’s plans to enhance dollar liquidity in the foreign currency (FX) market.
“There are sufficient dollars in circulation right now. The noticeable change is that individuals have ceased hoarding, resulting in a surge of liquidity in the FX market,” explained Abubakar Ibrahim, an FX trader, on Friday.InformationGuideNigeria
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Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to CanadaForeseeing the continuation of this trend, Ibrahim projected, “At the ongoing rate, the dollar might depreciate to levels below N1,000 next week.”
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In recent days, the Naira has witnessed a significant appreciation, increasing by 22.13% (equivalent to N290/$). By Friday, the dollar’s rate on the black market had declined to N1,020, a substantial drop from N1,310 just the previous Thursday. Street vendors have quickly adapted to the trend, purchasing dollars at rates as low as N980 on Friday, compared to N1,130 the day before.JAMB Portal
With the current market dynamics, speculators have begun selling off their previously hoarded dollars to avoid potential losses. In a typical scenario, before the reopening of international schools in January, individuals often bought dollars in anticipation of future needs like school fees. However, the government’s strategies to increase dollar supplies have reduced this demand, fostering hopes for a further dip in rates.JAMB Result
Attributing the Naira’s resurgence to multiple factors, Muda Yusuf, the CEO of the Centre for the Promotion of Private Enterprise, pointed to inflows from oil swap agreements and loans. Yusuf elaborated, “The government has briefed us on the measures they’re implementing to boost liquidity, encompassing the NNPC‘s swap or forward sales, expected to bring in approximately $3 billion. Recently, there were also talks of an anticipated $10 billion influx into the economy.”NYSC Portal
Yusuf further expressed confidence in the government’s efforts: “It seems some of these initiatives are beginning to materialize, and as stated by the government, their primary focus is on clearing the existing backlog to restore faith in the financial system.”
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