Nigeria’s Central Bank has taken steps to guide the money trade with the aid of presenting $148 million to 29 authorized sellers. These transactions took place on July 22 and 23, 2024, as part of efforts to make the marketplace more stable and less volatile.
A message on the Central Bank’s website says that these approved sellers, which include banks and currency exchange shops, bought the dollars at rates of 1,470.00 naira for $1 and 1,510.00 naira for $1. This action comes after they sold $122.67 million to 46 approved sellers two weeks earlier.
Even with these efforts, the Nigerian currency, the naira, has kept falling compared to the US dollar. On Thursday, it was worth over N1,600 in the official market. The Central Bank of Nigeria (CBN) also said they plan to sell $20,000 to each Bureau de Change (BDC) at a rate of 1,450 naira for each dollar.
Experts who study money matters are worried about a lot of foreign money being taken out of the Nigerian stock market. In the first half of the year, N311.41 billion worth of investments were taken out. This has made people afraid that the naira might lose more value and hurt Nigeria’s economy.
Olaitan Baanu, a monetary professional, stated that to begin with, the influx of extra cash from overseas buyers appeared to be a high quality signal. However, with so much cash now being withdrawn, it seems that these investors are only cashing in their earnings and exiting, that could result in troubles for the marketplace.
