On Friday, the naira ended the day’s trade at 663.04/dollar after its free fall caused by the Central Bank of Nigeria‘s floating of the national currency against the dollar and other global currencies. The naira appreciated by about 5.9% within 24 hours from the N702.19/dollar recorded at the close of business on Thursday. This data was sourced from the FMDQ Securities Exchange, where the naira hit N664.04/dollar at the close of trading at the I&E Window on Wednesday and N702.19/dollar on Thursday.

The CBN’s decision to float the currency was hailed by the organised private sector and economists who said the move would unify the country’s multiple exchange rates and boost the FX market. It allows buyers and sellers of foreign currency in the official FX markets to quote rates they find comfortable, as opposed to the previous practice where rates were dictated by the CBN. However, there was depreciation on the parallel market, which opened at N750/dollar and closed at N760/dollar on Friday. This is in contrast to JP Morgan‘s commentary that the official naira exchange rate to the US dollar would steady in the coming months.

However, despite unifying exchange rates, the CBN has reiterated that the status quo remains on the 43 non-eligible items banned from the forex market, introduced under the suspended governor, Godwin Emefiele. Nigerians imported at least nine items worth N18.12tn from the forex ban list of the CBN between 2016 and 2022, according to an analysis of Nigerian Foreign Trade reports of the National Bureau of Statistics from 2016 to 2022.

In a recent projection, Morgan Stanley stated that the naira is expected to appreciate at the parallel market rate, as more flows are redirected through formal banking channels. The global financial services firm expects the local currency to jump to at least the rate on the black market following initial pressure from a monetary policy reset. Ari Aisen, Resident Representative for Nigeria of the IMF, expressed the organisation’s support for the unified exchange rate, adding that the fund stands ready to support the new administration in implementing foreign exchange reforms in the country.

The PUNCH apologised for calling Mohammed Abba Umar the Director of Operations of the Economic and Financial Crime Commission, who was directed to assume the headship of the anti-graft agency following the suspension of Abdulrasheed Bawa as the chairman of the commission. He is no longer the Director of Operations of the agency and therefore not the designated person directed to assume the post of the Acting Chairman of the EFCC. The Director of Operations of the agency, who was directed to take over from Bawa as the acting chairman, is Mr Abdulkarim Chukkol.

ENND