Naira gains, trades at 860/$ on parallel market…
Written by City Radio on August 17, 2023
The Nigerian Naira has extended its gaining streak against the US Dollar as the parallel segment of the foreign exchange (FX) market reacts to the $3 billion crude oil repayment loan secured by the Nigerian National Petroleum Company Limited (NNPCL) from the Africa Import and Export Bank (AFREXIM).
This move is aimed at stabilising the local currency.
As of 9:52 AM on Thursday, August 17, the parallel market FX dealers were observed buying the US Dollar at N835 while selling it at N860.
This marks a significant improvement from the rates prior to the announcement of the AFREXIM loan deal, where dealers were buying the US Dollar at N880 and selling it at N910.
Otega Ogra, the senior special assistant to President Bola Tinubu on Digital and New Media, explained in a tweet what the $3 billion Emergency Crude Repayment Loan from Afrexim is meant to achieve.
He said that the loan will assist NNPC Limited in settling taxes and royalties in advance.
“It will also equip the Federal Government with the necessary dollar liquidity to stabilise the naira with limited risk,” he said.
CityRadio 89.7FM