Naira Appreciates To N856/$1 In Official Window As Afreximbank Injects $2.25bn Into FX Market

In a positive turn for the Nigerian economy, the Naira saw a surge against the dollar at both the official and parallel forex markets on Monday.

The official exchange rate closed at N856.57 to a dollar, marking a 1.45% gain from the previous day’s N869.13.

Additionally, the unofficial market witnessed an increase, with rates quoted at N1245/$1, showcasing a 0.80% surge over the preceding day’s figures.

Commenting on this development, an Afreximbank spokesperson stated, “The release of $2.25 billion out of the $3.3 billion FX support facility is a strategic step to address Nigeria’s acute liquidity shortage in the FX market.”

READ ALSO: Naira Scarcity: ATM Usage Drops To 40% With Surge In Online Banking – KPMG

This move follows a pivotal agreement signed in late 2023, emphasizing financial cooperation between Afrexim Bank, United Bank for Africa, NNPC Limited, and other key stakeholders.

The $3.3 billion facility, orchestrated by Afreximbank and executed in partnership with UBA, NNPC, and major oil trading firms like Sahara Energy, Vitol, Oando, and Gunvor, aims to bolster dollar supply and alleviate Nigeria’s FX challenges. As part of the deal, contributing $100 million to the facility underscores the collaborative efforts driving this financial initiative.

Emmanuel Ochayi

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Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

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