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Business News of Thursday, 1 June 2023


Naira rebounds at parallel market, hits 750/dollar

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The naira continued to strengthen against the United States of American dollar at the parallel market as it closed N750 per dollar on Wednesday from N763 in the previous session.

Naira had appreciated by N7 against the US dollar on Tuesday after opening at N770.

However, the performance of the naira was largely bearish at the official market and Investors & Exporter window, as it weakened by 0.03 per cent and 0.04 per cent to close at N461.60/USD and N464.67/USD respectively, based on data from the FMDQ and Central Bank of Nigeria.

President Bola Tinubu in his inaugural speech on Monday directed the Central Bank of Nigeria to work towards a unified exchange rate.

He said, “The central bank must work towards a unified exchange rate…they should direct the fund from arbitrage to meaningful investment. Interest rates need to come down, currently too high, anti-people, anti-business, we have to work on all of those.”

The CBN operates a multiple exchange rates regime with different rates adopted by different segments of the economy. They include the Nigerian Autonomous Foreign Exchange Rate Fixing also called I&E forex window, parallel market rate, International Air Transport Association rate, Interbank Exchange Rate and Bureaux De Change rate are few examples.

The World Bank had also in the recent weeks called for the unification of the exchange rate.