Official, black markets close gap as the Naira gains against the Dollar, analyst predict new rates

The Nigerian currency gained in the parallel market on Friday, March 22, 2024.

The naira gained two per cent from the N1,500 recorded on March 20, 2024.

Bureau de Change (BDC) operators quoted the buying rate of the dollar at N1,430 and the selling price at N1,470 per dollar, leaving a disparity of N40.

The naira drops 3.58% in the official market

However, at the Nigerian Foreign Exchange Market (NAFEM), the naira dipped by 3.58% to trade at N1,431 on Friday, March 22, 2024, from the N1,382 per dollar it traded on March 21, 2024.

Traders quoted the dollar at an intraday high of N1,468 per dollar and a low of N1,301 in the official market.

The development comes as the Central Bank of Nigeria (CBN) revealed on March 20, 2024, that it had settled all valid Forex backlogs.

This led foreign airlines under the aegis of the Association of Foreign Airlines and Representatives in Nigeria (AFARN) to ask the CBN to provide proof of payment to foreign airlines.

Naira’s gains come amid increased Forex inflows of $1.3 billion in February, as reported by the CBN governor, Olayemi Cardoso.

Financial experts believe the backlogs hurt the naira as investors have avoided the Nigerian economy.

Analysts predict N1,200 per dollar

The naira’s rebound signals a positive economic outlook, with analysts predicting that the local currency will rebound to N1,200 per dollar.

Economist, banker and financial analyst Frank Ijeh said the naira is poised to converge at N1,200 per dollar before the end of 2024, going by the current trajectory.

Ijeh stated in a chat with Legit.ng that the naira recovery was expected because it became the priority of the Nigerian government and the CBN.

“Many things were hinged on the recovery of the naira. Inflation, especially food inflation, was predicated on the performance of the naira against the dollar.

“We will notice now that inflation might moderate as Nigerians can afford few things.”