The naira is showing a gradual improvement against the dollar, particularly in the parallel foreign exchange (FX) market, which responded positively to the $3 billion crude oil repayment loan obtained by the Nigerian National Petroleum Company Limited (NNPCL) from the Africa Import and Export Bank (AFREXIM) to stabilize the local currency.
According to information from the FMDQ website, as of Wednesday, August 16, the naira closed at N773 to the dollar at the NAFEX window. Subsequently, it continued to strengthen, closing at N740 to the dollar on Thursday.
FRESHREPORTERS MEDIA reports that before news of the AFREXIM loan deal was announced on Wednesday, FX dealers in the parallel market were buying the dollar at N880 and selling at N910.
Otega Ogra, Senior Special Assistant to President Bola Tinubu on Digital/New Media, explained in a tweet that the $3 billion Emergency Crude Repayment Loan from Afrexim would “assist NNPC Limited in prepaying taxes and royalties. It will also provide the Federal Government with the necessary dollar liquidity to stabilize the Naira, with limited risk,” he stated.
He further mentioned, “A stronger Naira resulting from this initiative will lead to reduced fuel costs. This means that if the Naira appreciates in value, the cost of fuel will decrease, and further price hikes will be prevented,” Ogra concluded…[CONTINUE READING HERE]>>>
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