Also according to Nairametrics, Naira peaked at N1279/$ on Thursday evening but settled at N1113/$ on Friday as of the time of filing the report.
Nigerian currency, Naira on Friday appreciated against United State dollars at the black market rate of N1230 to a dollar.
It will be recalled that on Thursday, the exchange rate was N1,300 per dollar, representing a 0.76% increase (N10) compared to the N1,310 rate recorded on Tuesday on the black market.
Also according to Nairametrics, Naira peaked at N1279/$ on Thursday evening but settled at N1113/$ on Friday as of the time of filing the report.
However, a check by SaharaReporters on Access Bank Convert FX showed that 1$ is rated officially for N785.
According to market observers, the increases may be attributed to a lack of buyers, as very few people are willing to spend roughly N1300/$ in anticipation of the local currency improving amid a series of socio-economic challenges in the country.
Nigeria’s finance minister, Wale Edun, had also indicated that the country was expecting $10 billion in foreign currency inflows in the coming weeks to assist boost liquidity in the foreign exchange market, which has hindered growth in Africa’s largest economy.
President Tinubu, according to the finance minister, issued two executive orders authorising the issuance of domestic financial instruments denominated in foreign currencies, as well as the transfer of all monies outside the banking system into banks.
The perception among traders, particularly speculators, is that the exchange rate will rise against the dollar in the coming days, forcing them to sell lower in order to avoid losing their shirts.
His words came shortly after President Tinubu told summit attendees that he would clear the backlog and had taken steps to address liquidity in the foreign exchange market.
He says that every transaction in the foreign exchange market, from the official to the money changers, where large amounts of arbitrage have regularly happened, will be closely watched, and those who transgress will be found out and dealt with.
He acknowledged that illiquidity is the reason Nigeria’s foreign exchange market isn’t operating efficiently, but the government is willing to take all necessary steps to alter the current situation.
The foreign exchange market will be streamlined and restructured so that all rightful and proper transactions will be covered by the government and take place in the official foreign exchange market. Anything beyond that will be punished, considered a criminal offense, and illegal, according to Edun.
Meanwhile the US. S dollar hit a near one-week high versus a basket of currencies on Wednesday as investors’ desire for riskier currencies decreased in the wake of disappointing corporate results that heightened concerns about the state of the economy and as Treasury yields increased.
Risk sentiment also took a hit as tech giant Alphabet fell after its cloud division failed to meet revenue projections, and other large-cap stocks also eased because of lower earnings and rising US Treasury bond yields.
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