The naira remains stable at the official and parallel markets, with the foreign exchange (forex) reserves standing at $36.4 billion, data from the Central Bank of Nigeria (CBN) website has shown.
The naira’s stability at same exchange rate for the past four days ignites hope that previous volatility in the market is being subdued by rising foreign reserves.
The naira on Tuesday exchanges at N480 to dollar at the parallel market and N379 to dollar at the official market, same rates they have remained since January 28.
The foreign reserves stood at $36.4 billion as at January 25, and has remained upbeat as the Central Bank of Nigeria (CBN) continued to monitor dollar remittances by International Money Transfer Operators (IMTOs) and export proceeds.
The CBN also noted the increase in the level of external reserves, which stood at $36.23 billion as at January, 21 compared with $34.94 billion at the end of November 2020.
This reflected improvements in crude oil prices, partial global economic recovery amid optimism over the discovery and distributions of COVID-19 vaccines by most developed economies.
However, the regulator insists its policy mandating IMTOs to pay Diaspora remittances beneficiaries in dollars is being flouted.
CBN Director, Trade and Exchange Department, O.S Nnaji, said the apex bank will blacklist and close bank accounts of unlicenced companies facilitating diaspora remittances into the country.
Analysts noted the need to continue to explore avenues to improve inflow from sources such as the IMTO, diaspora remittances and non-oil export promotion, given the current trajectory of crude oil prices.
These sources, they said, would boost foreign exchange supply and ease the current exchange rate pressure, while maintaining that the naira gain, remained marginal, but raises hope on its future.
President, the Association of Bureaux De Change Operators of Nigeria (ABCON) Aminu Gwadabe, said currency speculators pushing the naira to forceful depreciation through their illegal activities would continue to incur losses as the local currency sustains its stability across markets.
To boost dollar liquidity in the market, the CBN has sustained its intervention across the foreign exchange markets to meet the needs of manufacturers and end-users who need dollars for their medical trips, school fees payments, travel allowances, and others.
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