It is beyond a doubt now that the Central Bank of Nigeria’s (CBN) monetary policies have been paying off, with the Naira reaching quite a positive level of appreciation and today has been pegged at 1409.943 as the buying rate against the United States Dollar, which analysts saw that coming.

Ever since a devaluation move started last June, goods and services shot up to unprecedented levels partly because of the reported sinister motives of some uncanny Bureau de Change operators who could fix rates that far outstretch the official figures posted on the Investors and Exporters (I&E) window displaying on the apex bank’s website.

This has been putting enormous pressure on households and businesses, so any ease regardless of the margin is most certainly welcome. The last CBN monetary policy committee (MPC) meeting in late February was open to clearing FOREX backlogs owed to multinationals trying to repatriate their earnings but haven’t been able to.

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A personal statement by Bala M. Bello, a member of the MPC mentioned what should be the focus when giving his note. He said: The depreciation in the naira exchange rate with significant pass-through effects further exacerbates the threat to price stability.

Thus, keeping the exchange rate within desired levels is crucial for price stability. While the recent exchange rate policies implemented by the Central Bank of Nigeria (CBN) are gradually showing some positive results, implementing complementary policy actions by the MPC and the fiscal authority that can increase foreign exchange inflows in the short to medium term, will lead to even better outcomes. 

It is going to be the Monetary Policy Committee’s meeting on both 25 and 26 March, and there will be many positives to discuss heading into that.

Notice of the 294th Meeting of the Monetary Policy Committee (MPC). pic.twitter.com/Uks4PB4u9Z

— Central Bank of Nigeria (@cenbank) March 19, 2024

On the streets, the BDCs are quickly trying to dispense their stock of the greenback  before its depreciation against the Naira worsens. Those who chatted with Punch News confirmed it on Thursday; like Mallam Abubakar Salisu, trading on the grounds of Murtala Muhammed Airport in Lagos.

As of today, says Mallam Salisu, many of us bought and sold at 1,400/dollar and ₦1,450/dollar.

The rate is still volatile but many of us are anxious to sell because we know the dollar will soon crash. The only challenge is that many [of] us bought the FX when the rate was around ₦1,600, so we are concerned about the loss.

FOREX traders like him are looking to minimise the repercussions of betting against a now stronger Naira after a tumultuous 2023 journey, which continues and has only eased.

Goldman Sachs’s prediction reads that the local currency by the year’s end could excite the sum of ₦1,200 when put beside the dollar. Surely, time will help see how that outlook pans out.

Ayodele Johnson

Ayodelé is a Lagos-based journalist and the Content and Editorial Coordinator at Meiza. All around the megacity, I am steering diverse lifestyle magazine audiences with ingenious hacks and insights that spur fast, informed decisions in their busy lives.