Connect with us

Naira Watch

Naira appreciates against US dollar after CBN rejects IMF, World Bank reform advice

Published

on

The Nigerian currency appreciated against the United States currency after the Central Bank of Nigeria (CBN) boldly rejected the call by International Monetary Fund (IMF) and World Bank to allow market forces to determine the exchange rate.

Data from FMDQ securities at the last trading day of last week showed naira closed at $418.33 to a dollar compared to the N419.50/$ it exchanged a day before.

The improved performance on Friday last week happened on the back of improved forex supply at the official market.

CBN on Friday pumped $169.06 million to the official market to meet Investors’ and Exporters’ forex needs.

Godwin Emefile, CBN governor had last week insisted on a homegrown solution to managing Nigeria’s exchange rate and continue with its intervention in the forex market despite IMF, World bank saying it was putting pressure on the naira.

“The IMF and World Bank provide advice that we work with. But even at some of our private meetings, we realise that there are challenges, leading us to adopt homegrown solutions to address them. We cannot adopt what is being proposed; we cannot adopt a free float of our currency,” Emefiele said.

Read also: Naira drops further to new low at official market as CBN defends policies

Similarly, the value of the naira also appreciated against the British Pound Sterling on Friday by N6.70 to N536.58/£1 from N543.28/£1

Naira also gained against the Euro, by 29 kobo closing Friday at N450.28/€1 compared with the previously quoted value of N450.57/€1.

At the Peer-to-Peer (P2P) segment, the Naira gained 0.17 per cent or N1 against the American currency last week to trade at N585/$1 in contrast to the previous day’s N586/$1.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Investigations