CEM REPORT, MARKET | The Naira seems to be finding a balance in its volatility, although still in the one-thousand naira range, it is not losing its strength as experienced in the previous weeks. The naira is presently selling at ₦1,005/$1 in the black market.
CEM sources say rates are determined by location. A source in Ibadan reveals that the naira is selling at ₦1,025/$1. This is a significant improvement from ₦1,300/$1 it sold earlier last week.
The black market buying rate for the dollar is averaging within ₦990 and ₦1,005 across several vendors.
Data from Aboki FX reveals that the naira is selling at ₦1,005/$1 well.
At the CBN window, the naira is trading at ₦783.6/$ from a close of ₦786.5/$ yesterday, while at the Federal Government Single window trade, Customs Rate goes for ₦757/$1.
The NAFEM window closed yesterday at ₦809/$1.
The strength and balance in the naira can still be attributed to the settlement of the FX backlog in recent times. However, the federal government must not sit on its laurels but implement policies to strengthen the naira.
While it awaits the $10 billion to boost market liquidity and seeking strategies to weaken the black market, the federal government should make another move before “market forces” weaken the naira
However, a report by JP Morgan states that the funds may never come through.