Having opened at N1,130 to the dollar on Monday morning, the value of the naira gained strength midday as traders anticipate another round of dollar sales to Bureau de Change (BDC) operators this week.

By noon on Monday, the naira was selling at N1,000 to the dollar at the parallel market. Last week Monday, the Central Bank of Nigeria (CBN) had offered $15.88 million to BDC operators at N1,101 to the dollar, pushing up the value of the naira on the streets.

The CBN sells dollars to the BDCs at the lower band of rate quoted on the Nigeria Autonomous Foreign Exchange Market (NAFEM). Last week Friday the value of the naira was between N1,265 and N1,100 to the dollar.

In anticipation of another liquidity push out by the apex bank, the value of the naira which opened trading activities on the parallel market at N1,130 to the dollar had firmed up to N1,000 by midday.

This corroborates with the projection of US Bank Goldman Sachs which at the weekend projected that the naira will be trading at N1,000. Goldman Sachs Group Inc, had projected that the naira will be among the best performing currencies in the world.

Having predicted in February that the naira would strengthen to N1,200 per dollar this year, Goldman economists, say they see it potentially advancing beyond that level after a raft of measures by the central bank.

Those included 600 basis points of cumulative interest-rate increases at policy meetings in February and March, as well as other steps to ease the local scarcity of dollars that fanned volatility and forced companies to the parallel market.

Goldman’s Andrew Matheny told Bloomberg Newswire in an interview that “this probably can run further; we would see an extension of the move to 1,000 and maybe even sub-1,000, six weeks have gone by and they’re continuing to hold the line, so that’s encouraging.”

The group maintains its 12-month forecast for the naira at 1,200 per dollar, owing to uncertainty around the ability of the authorities to maintain the reform tempo, though it now sees risks to that upbeat projection.

https://leadership.ng/just-in-naira-hits-n1000-ahead-of-cbn-sale-to-bdcs/#:~:text=By%20noon%20on%20Monday%2C%20the,the%20naira%20on%20the%20streets.

The question is will CBN's own be that cheap?
If they the fear of CBN selling below N1000 is real enough, then black market can actually be below N1000 as hoarders try to minimize loss and remitters try to maximize what they sell for.
The speculation is both ways.

CodeTemplar:
The question is will CBN's own be that cheap?
If they the fear of CNN selling below N1000 is real enough, then black market can actually be below N1000 as hoarders try to minimize loss and remitters try to maximize what they sell for.
The speculation is both ways.

CBN does not speculate, they sell to BDC based off on trading at the official foreign exchange market.

Yeepsy

CodeTemplar:
The question is will CBN's own be that cheap?
If they the fear of CNN selling below N1000 is real enough, then black market can actually be below N1000 as hoarders try to minimize loss and remitters try to maximize what they sell for.
The speculation is both ways.

I think the Aljazeera price should be better

helinues:


I think the Aljazeera price should be better

You Sabi say na typo but you still highlight am ..
Actually I thought I was the only one that saw it oh ..
Me sef I go buy from aljazeera

PressMyButton:

CBN does not speculate, they sell to BDC based off on trading at the official foreign exchange market.

they are doing reverse speculation and fishing for the lowest sustainable rates they can sell.

CodeTemplar:
they are doing reverse speculation and fishing for the lowest sustainable rates they can sell.

Bro, drop the weed. CBN does not speculate of any kind or fishing for any rates, CBN's rates are determined by trading activities at the foreign exchange market.

Let's go!

N500 before the end of May is actually feasible now

I need to get a MacBook M1 air to boost my Graphic design brand

PressMyButton:

Bro, drop the weed. CBN does not speculate of any kind or fishing for any rates, CBN's rates are determined by trading activities at the foreign exchange market.

i insist on the speculation by cbn.

Omo when I sent money to my guy 2 days ago, my body do me one kind thing like I’ve been scammed. Imagine $$ wey you go send $100 give people wey them go praise you coz like 170k go biza, now that same $100 na just normal 100k.

Naira at almost N1097, today trading almost closer to N1000.

Cardoso should just make sure it never go above 1k ever again. They should deploy every strategy and make sure it get to a certain amount and stabilize.

God bless Nigeria.

This is about to happen to me 😢

Lol BDC wan play CBN fast one Incase dem wan sell for 1050 naira...

BTFD

Let's not lie Tinubu is trying, just that he met a disaster on ground . Things he would have to bear for wanting to be president of a messed up country.

Mark this down Tinubu will leave government as a good president.

Things are hard now but it won't be for long.

Take this from my humble self The Erelu Oodua

Deji Adeyanju kept advising people to buy more dollars..I'm sure he himself didn't buy oo

Keep defending the naira and giving poor Nigerians hope while the rich keep buying up dollar knowing it's just a temporary measure and USD will rise again

The same circle of cluelessness all over again

Nigeria’s Reserves Depreciates by $595m in One-month as CBN Defends Naira:

https://www.thisdaylive.com/index.php/2024/04/10/nigerias-reserves-depreciates-by-595m-in-one-month-as-cbn-defends-naira

Some group of people are in severe pain right now!!!

Cardoso, take your flowers 🌺🌹

At least the Tinubus will have something to beat their chest on.

Not reflecting in d market. Also fuel still sells at 680 per liter

CodeTemplar:
i insist on the speculation by cbn.

if cbn speculate wouldn't they rather drive the price up to earn a commission from it even if they don't want to dabble into illegality?

This isn't good news.The fundamentals don't support it.

If the foreign reserves have dropped by over a billion dollars in the past 30 days, it simply indicates the currency is now overvalued.

There's also the issue of he expected wage increase on May 1st. This is bound to lead to an increase in money in circulation which should spook inflation and a depreciation of the local currency.

I suspect the Naira's true value is around 1,400. This would make sense as monetary policy is still loose.

The CBN needs to tighten monetary policy. This would mop up excess cash in circulation which would lead to an appreciation of the Naira and a drop in inflation.

In addition, I feel the elephant in the room is the petrol subsidy. Latest reports have it that presently, the government spends as much as 907bn monthly on it.

A weak Naira increases the cost of the subsidy. The stronger the Naira it is, the lower the expense of the government.

The subsidy needs to be completely done away with and the price of petrol deregulated.

To mitigate the pain of any price increase, government should lift the protectionist wall built against the importation of rice, poultry and okrika.

A 20% import duty on these products would crash their prices. I won't be surprised if a bag of rice drops to 40k per bag. A kilo of poultry would probably drop to 2-2.5k per kg.

I would have said import duty on cars should be reduced to 20%.

I would have added the import duty on wheat should fall from 70% to 20% but the Common External Tariff for the produce is set at 50%, so it's a no-no.

Food in Nigeria is higher than it should partly due to the high import duty on food.

I learnt of one slowpoke that got N10M loan to buy dollars when it was N1,860.

Enemies of Nigeria will forever continue to lose.

I am sure many of them are reading this comment. Ntor 😛

Ipob won't be happy, obidense won't be happy

Naira hits.....yet the price of goods and services no gree come down. Na wetin common man needs. Not all these nonsense and ingredients.

Lmao

Great Development

Good one there.

Nice, but I know some people won't be so happy about this news, especially those earning in dollars 😁😁😁

Imagine this Chinese streamer earning 18 Million dollars in just 7days, that's so crazy, then imagine if she was a Nigerian.


https://www.youtube.com/watch?v=OgxW55Ko8eY

Still prices of goods and services refused to drop.

This is encouraging!









Please who has 2million naira or more sitting in his or her account or that you're not using, I need investors for my farm.

CBN should sustain the tempo to further bring the dollar down. We want it below 800