Parallel market players are suggesting a buy price of N1400/$1 for dollar holders wishing to sell, indicating a major strengthening of the naira.
According to Nairametrics, the exchange rate has recently increased as speculators begin to dump their hoard of dollars in response to decreasing demand.
Multiple sources who operate in the parallel market revealed that the naira has risen from around N1600/$ which it closed yesterday to N1500/$ (some quoted N1550/$1) if they are to sell to you.
However, they buy at N1400/$1 allowing them to make a spread of N100/$1.
A trader by the name of Musa who spoke to Nairametrics expressed happiness with the development stating that a stronger Naira was also good for their business.
Meanwhile, the exchange rate on the official market fell to N1,560/$1 on Tuesday the strongest the naira has traded since the 4th of March when it closed at N1534/$1.
What you should know
The Central Bank yesterday announced the date for its next Monetary Policy (MPC) meeting where it would deliberate whether to hold MPR or continue the hike. At its last meeting, the apex bank went bullish on interest rate raising MPR by 400 basis points to 22.75%, the highest single increase on record.
Also, the foreign investors’ appetite for CBN’s OMO auction and Nigeria’s Treasury bills might be connected to the recent gains of the naira in the past few days. The apex bank had earlier reported that foreign investors dominated Treasury bills and OMO auctions as about 75% of subscribers were foreigners.
Furthermore, the bank noted that there has been significant forex inflow in the past month as remittances from Nigeria’s diaspora reached $1.3 billion in February from just $300 million received in the preceding month marking a fourfold increase.
Naira metrics