The dollar’s value against the naira witnessed a significant drop from its peak of N1,310 last week, resulting in a marked appreciation of the naira, particularly on the black market.
Business Day reports that on Thursday, the naira showed a notable gain of 2.56 per cent as the dollar traded at N1,140, a decrease from its previous rate of N1,170 on Wednesday in the black market segment of the foreign exchange (FX) market.
Traders attributed the naira appreciation to specific government-proclaimed policies, causing uncertainty among speculators.
The government’s plan to digitize FX transactions and discourage speculative demands and hoarding of cash in foreign exchange played a crucial role in shaping the market dynamics.
Additionally, the Central Bank of Nigeria (CBN) made strides in resolving unsettled matured FX forward contracts in banks, clearing approximately 75 per cent to 80 per cent of the contracts. This move significantly relieved pressure on the foreign exchange market.
The official market also saw positive trends, experiencing a considerable increase in the value of the naira against the dollar. At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira strengthened by 3.59 per cent on Wednesday and a remarkable 17.96 per cent on Tuesday.
The dollar’s exchange rate exhibited a noticeable shift in the official market, as per data obtained from the FMDQ. Wednesday recorded a trading rate of N786.02, showcasing strength compared to Tuesday’s rate of N815.32, which improved from Monday’s rate of N993.82.
