MON MAY 20 2024-theGBJournal| The naira traded in a happy mood Monday, at the start of a new week that is set to provide answer over the future path of Nigeria’s interest rates.
The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) is currently meeting in Abuja to determine the interest rates.
As at close of trading at the official market, the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira traded higher by 1.9% to N1,468.99/US$1.
The local currency was hit last week as exchange rate at the NAFEM window weakened by 2.07% against the US dollar to N1,497.33/US$1.
In the parallel market, the exchange rate also fell, to N1,510.00/US$1 from N1,470.00/US$1 the previous week.
At the close of the week, the gap between the official and street markets widened to 0.85%.
The CBN’s published gross foreign exchange reserve added 0.60% on the week, to close at US$32.64bn.
While supply remains an issue, in a bid to increase the overall effectiveness of remittance transactions into the country, the CBN has licensed 14 new international money transfer operators (IMTOs), which are set to further diversify the foreign exchange market by encouraging greater competition.
This move is in line with CBN’s strategy to increase foreign currency remittances through formal channels.
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