The naira tumbled to N1,300 per dollar 1at the parallel market.
This comes after it closed trading on the Peer-to-Peer cryptocurrency window at N1,315.3/$1 for the day. Bureau de Change operators validated the parallel market pricing
The naira’s continued fall is despite efforts by the government to boost liquidity in the official market. Dollar supply on the official Investor and Exporter window has fallen by 89.13 per cent in the last five days despite recent moves by the government to boost liquidity in the official market.
The foreign exchange turnover in the I&E Window fell to $26.37m on Monday, January 15, 2023, from $242.60m on Wednesday, January 10, 2023.
This is in spite of the recent news that the African Export-Import Bank has granted the Nigerian National Petroleum Company Limited a $3.3 billion oil-for-cash credit line totaling $2.25 billion in order to increase foreign exchange liquidity.
In response to the fund, Afreximbank President and Chairman of the Board of Directors, Professor Benedict Oramah, stated, “The disbursement of the initial $2.25 billion under the facility will support Nigeria’s long-term economic stability, ease access to import financing for raw materials and essential goods, and support industrialization and trade development efforts.”
“We are pleased that despite the typical year-end pressures, our partners and investors committed the funds required in record time. We thank them for their support.”
The NNPCL Group Chief Executive Officer, Mr. Mele Kyari, noted, “The proceeds of the facility have been made available to the Federal Republic of Nigeria as one of several efforts towards improving macro-economic stability. The participation of global, international, and regional syndication firms is a further testament to the lending market’s appetite for financing sponsored by NNPCL and signifies solid market confidence in Nigeria.”
In December, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated that the loan was aimed at resolving FX shortage in the economy.
Other efforts made by the government include the recent Central Bank of Nigeria repayments of $2bn to clear part of its backlog of matured foreign exchange obligations to the Deposit Money Banks.
The CBN Acting Director of Corporate Communications, Hakama Sidi Alia, commented, “These payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, to alleviate the current pressure on the country’s exchange rate.
Liquidity is yet to return to the market as the national currency has hovered around and above N1000 against the dollar consistently on the official I&E in 2024.
Related posts:
Naira falls to N369 at parallel market
Naira strengthens against dollar at parallel market
Naira gains 50k against dollar at parallel market
Naira crashes to N465 per dollar in black market
Naira Extends Gain on Parallel Market, Now $449/$1
Naira depreciates to N365 in parallel market
Naira appreciates to N359 per dollar
Disparity between official window and parallel market not sustainable – Muda Yusuf
