Naira Gains at Official Market, Slumps at Black Market Despite Tinubu’s Intervention

The naira appreciated slightly against the US dollar at the official market on Friday, closing at N739.52 per dollar, according to data from the FMDQ website. This represents a 0.2 per cent increase from N740.67 per dollar recorded on Thursday.

However, the naira weakened marginally at the black market segment on Friday, despite the government’s efforts to stabilise the exchange rate. According to information gathered from currency traders across the country, the dollar was sold for between N845 and N858 per dollar on Friday, compared to N820 and above on Thursday.

The naira’s significant recovery this week started shortly after President Bola Tinubu met with the acting governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi, on Monday, to discuss what could be done to stabilise the Nigerian currency and improve the liquidity in the market.

Mr Shonubi blamed speculators for the current exchange rate situation, saying the president was “very concerned” about it. He said he briefed the Nigerian leader on some of the plans and strategies to address the challenge, which he did not disclose.

The naira has depreciated by almost 40 per cent across both the official and unofficial currency markets in recent months, after the government announced plans to unify market rates in order to find convergence for its multiple exchange rates and close the gap between both markets.

The naira’s exchange rate has been a source of concern for many Nigerians, especially those who rely on foreign exchange for their businesses or personal needs. The volatility of the naira has also affected the prices of goods and services in the country, as well as inflation and economic growth.

The government has been trying to boost its foreign exchange reserves by increasing oil production and exports, attracting foreign investments and loans, and promoting local production and consumption. The CBN has also introduced various policies and interventions to support the naira and ensure stability in the foreign exchange market.

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