Parallel market operators are witnessing a surge in the value of the Nigerian Naira against the US dollar, with the exchange rate hitting N1400/$1 for sellers.
Reports indicate that speculators in the market are offloading their stock of dollars, leading to increased supply and a consequent rise in the value of the Naira. The exchange rate has experienced a recent uptrend, climbing from around N1600/$1 to N1500/$1, with some sources quoting even higher figures at N1550/$1.
Buyers in the parallel market are now purchasing dollars at N1400/$1, allowing for a spread of N100/$1.
Meanwhile, the official market exchange rate also saw a decline, reaching N1,560/$1 on Tuesday, marking the strongest performance since March 4th.
The Central Bank’s forthcoming Monetary Policy Committee (MPC) meeting is anticipated to address the recent monetary policy decisions, including the unprecedented 400 basis points hike in the Monetary Policy Rate (MPR) to 22.75%.
Foreign investors’ interest in the Central Bank’s Open Market Operations (OMO) auctions and Nigeria’s Treasury bills could be contributing to the Naira’s recent gains. The apex bank has reported a surge in forex inflows, notably from remittances, with diaspora remittances reaching $1.3 billion in February, representing a fourfold increase from the previous month’s $300 million.