The naira on Friday recorded its first closing gain of N39/$1 at the Investors and Exporters (I&E) window following the Central Bank’s (CBN’s) unification of exchange rates into the I&E window.
The naira, which closed at N702/$1 on Thursday came back strong yesterday, closing at N663/$1, a N39/$1 appreciation, according to data from FMDQ Group.
It was the first closing gain for the naira since the rate unification policy took off on Wednesday.
The policy, which allows forex dealers and investors to buy and sell dollars at exchange rate of their choice provided they can find buyers, had pushed the local currency to over 15 years low before the ongoing recovery.
The new policy is part of the bold reforms promised by President Bola Tinubu.
Ranging from subsidy removal to some “housecleaning” at critical institutions to exchange rate unification, the market has responded positively.
The Nigerian equities market has outperformed its peers, gaining 13 per cent in the past two weeks
A major support for the unified exchange rate policy came from the International Monetary Fund (IMF) on Friday, which gave its backing to the exchange rate unification policy of the apex bank.
Credit: thenationonlineng.net
