Naira Strengthens to N1,435/$ at Official Market: Central Bank Lifts IMTOs Exchange Rate Cap

The Nigerian naira exhibited strength in the official section of the foreign exchange market on Friday, marking a 1.84 percent appreciation. Closing at N1,435 per dollar, it gained N26.9 from the N1,461.90/$ rate reported just a day earlier.

Throughout the trading day, the dollar rate fluctuated, reaching highs of N1,526 and lows of N891, as reported by FMDQ Exchange, overseeing FX trading in Nigeria.

However, at the parallel market, the local currency experienced a slight dip, settling at N1,410 per dollar, reflecting a 0.71 percent depreciation from the N1,400/$ recorded on Thursday.

The gap between the official and parallel market rates narrowed to N25.53, a significant reduction from the N61.90 observed the previous day. This indicates a growing convergence between the two rates.

In a related development, the Central Bank of Nigeria (CBN) made a crucial move by lifting the exchange rate cap on international money transfer operators (IMTOs). The apex bank discontinued the previous practice of pegging the allowable limit of exchange rates to the official window’s closing rate from the preceding day. IMTOs are now directed to quote exchange rates for naira payouts based on the prevailing market rates.