This online news platform understands that the massive gain is coming after the Naira closed at ₦575 per a dollar last Tuesday, October 26, 2021.
Also, Glamtush reports that the Naira gained today, Wednesday, October 27, 2021, hitting ₦414.05 per dollar on Tuesday, 26 October 2021, after it closed at ₦415.07 per $1 on Wednesday, 26 October 2021 at the Nigerian autonomous foreign exchange (NAFEX) rate — the default FX reference for official and legitimate transactions.
The local currency remained flat at the official market as dollar supply rose significantly by 134%. Meanwhile, the International Monetary Fund (IMF) has attributed the decline in diaspora remittances into Nigeria to the uncertainty in the country’s foreign exchange market. Nigeria’s foreign reserve closed at $40.76 billion on Wednesday, 20th October 2021, representing a $377.04 million boost in the reserve position. The nation’s foreign reserve increased by 0.93% on Wednesday from $40.39 billion recorded as of the previous day.
Meanwhile, Glamtush reports that the development is coming a week after Nigeria’s Vice President, Prof. Yemi Osinbajo, called on the Central Bank of Nigeria (CBN) led by Godwin Emefiele to allow the naira reflect the realities of the market.
The Vice President had said the exchange rate is artificially low and deterring investors from bringing foreign exchange into the country.
“Prof. Osinbajo is not calling for the devaluation of the Naira. He has at all times argued against a willy-nilly devaluation of the Naira,” Laolu Akande, spokesperson to Vice-President had explained in a statement.
“For context, the Vice-President’s point was that currently, the Naira exchange rate benefits only those who are able to obtain the dollar at N410, some of who simply turn round and sell to the parallel market at N570.
“It is stopping this huge arbitrage of over N160 per dollar that the Vice-President was talking about. Such a massive difference discourages doing proper business, when selling the dollar can bring in 40% profit!
“This was why the Vice–President called for measures that would increase the supply of foreign exchange in the market rather than simply managing demand, which opens up irresistible opportunities for arbitrage and corruption.
“It is a well-known fact that foreign investors and exporters have been complaining that they could not bring foreign exchange in at N410 and then have to purchase foreign exchange in the parallel market at N570 to meet their various needs on account of unavailability of foreign exchange.”