Last updated on August 6th, 2023 at 07:19 am
The daily parallel market exchange rate closed at ₦475/1USD as Nigeria dived into the first weekend in the month of December (Friday, Dec 4, 2020).
It showed a slight depreciation from the previous day, Thursday, December 3, when trading at the black market closed at N470/1$.
We’re also seeing the effect of the latest policy reversal by the CBN which says IMTOs should ensure that remittances from abroad are done in accordance with the apex bank’s regulation.
Considering the influence of IMTOs on foreign currency exchange rate, CBN mandated them and the commercial banks to allow recipients of such remittances to collect such funds in whatever currency in such account.
Even before the announcement by the CBN, we saw how the Naira instantly appreciated against the US dollar, but that’s not enough.
We want to see how far the CBN would be able to enforce compliance so that the Naira would appreciate more against its competitors in the forex market.
See below how the Naira correlated against USD, Canadian Dollar, Euro at the forex market as at Friday, December 4, 2020
Naira Vs USD
- Black market: N475/1$
- FX Market: N378.16
- CBN rate: N380
- BDC: N480
Naira VS EUR
- At the black market: N570/1EUR
- CBN rate: N462.42
- BDC: N580
- FX market: N459.33
Naira VS British Pound
- Black market: N625
- FX Market: N508.9
- CBN rate: N511.67
- BDC: N630
Naira VS CAD
- Black market: N362
- FX Market: N294.69
- GTBank rate: N303
Final thought:
If the CBN continues to monitor the activities of the international money transfer agents, we may see the Naira appreciate against other foreign currencies as we prepare for another trading week commencing on Monday.
This would also have an effect on the activities of speculators at the black market exchange rate.
