Naira gains at parallel market as FG plans diaspora fund to attract dollars

The Nigerian naira rose to N1,380 per dollar in the parallel market on Friday, a gain of N70 in a single day, compared to Thursday’s close of N1,450/$1.

On the other side, the local currency depreciated to N1,339.23/$1 on the Nigerian Autonomous Foreign Exchange (NAFEM) window, reflecting a N29.42 decline from Wednesday’s close of N1,309.81/$1.

However, daily turnover on the NAFEM fell by 2.85% to $309.01 million, compared to $318.08 million the previous day.

The highest spot rate was N1,410, with the lowest at N1,051.

Meanwhile, as part of attempts to encourage and accelerate the migration of foreign capital into the economy, the federal government has announced plans to launch a $10 billion Nigeria Diaspora Fund.

The move is expected to among other things, improve FX liquidity in the system as well as strengthen the Naira exchange rate.

The Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, in a notice shared on her X handle (formerly Twitter), yesterday, revealed that the Nigeria Diaspora Fund Multi-sectoral Investment Initiative would be designed and managed by fund managers selected through an Expression of Interest (EOI) exercise where winners are expected to emerge.

Owing to this, the ministry has issued an EOI Expression to fund managers for the development and establishment of a multisectoral, multilateral private sector-led investment fund to form the $10 billion Nigeria Diaspora Fund.

News24 Nigeria recalls that Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, had recently said Nigerians living in diaspora remained a key source of foreign capital projection, adding that a diaspora bond would be launched by June.

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