The naira has had a rough start to the year but in breaking news, the Central Bank of Nigeria has fulfilled its promises and the influx of $100 million US Dollars has propelled Naira prices to well under 400 per dollar, both in parallel markets and government regulated banks alike.
The Central Bank of Nigeria release over $100 million in fresh dollars to replenish and overwhelm current supplies. However over $81 million was snapped up instantly from banks, exchanges and foreign exchange dealers, leaving $19 million for consumers and individuals to relieve stress on current stocks.
“Those who doubt the capacity of the Bank to sustain the intervention in the FOREX market are beginning to have a change of mind,” Mr. Isaac Okorafor, the Acting Director, Corporate Communications, CBN.
This overall helped propel the value of the Naira to under 400 which was seen just last month on the black markets.
To conclude the good fortune seen by the naira has been the result of the central bank stepping up to the occasion and relieving the constraints and limits places on foreign exchange. It is predicted the markets will be much more stable than previously holding up at the 390 mark in various cities such as Lagos and Abuja at 385. Surplus dollars also allow a huge drop in value of goods as the purchasing power of the naira increases rapidly having a knock on affect on the pound sterling and Euro conversion rates which have also become much more favourable.
This also has had an effect of lowering prices for Bitcoin as currently the exchange rate stands at 310,400/btc at the time of writing allowing for much cheaper Bitcoin prices.