Amidst a three-day holiday break, the Nigerian naira maintained stability, with the dollar trading at N1,125 on Friday, consistent with Thursday's rate of N1,120. However, due to reduced trading activity during the festive period, irregularities in market rates were observed. Transactions were limited, leading to sporadic deviations from standard market conditions.
Traders reported buying at N1,120 or N1,115 and selling at N1,130 or N1,125 per dollar. Anticipation for further appreciation of the naira above N1,120 per dollar grows as more dollars enter the market following the implementation of FX policy measures by the Central Bank of Nigeria (CBN).
Goldman Sachs predicts continued strengthening of the naira, supported by capital inflows and interest rate increases. The naira's remarkable performance, gaining 12% against the dollar in April and 14% in March, positions it as the world's best-performing currency.
The CBN's recent directive prohibiting the use of foreign currency-denominated collateral for accessing naira loans, except in specific cases, receives support from the Association of Bureaux De Change Operators of Nigeria (ABCON). ABCON President Aminu Gwadabe lauds the directive, emphasizing its potential to boost dollar liquidity, enhance reserves accretion, and fortify the financial services sector.
This directive aims to restrict the use of Non-Export Domiciliary Account Collateral for naira loans, permitting only Eurobonds issued by the Nigerian government or guarantees provided by foreign banks as acceptable collateral, as outlined by the CBN.
