Rédaction Africa Links 24 with Abdulkareem Mojeed
Published on 2024-03-27 22:35:40
The Nigerian Naira showed further strength against the United States dollar in the foreign exchange markets on Wednesday, as data collected from both official and unofficial market segments indicated positive movement for the local currency.
Data available on the FMDQ website revealed that the Naira closed at N1,300 per dollar on Wednesday, marking an improvement from the previous rate of N1,382.95 recorded in the market session on Tuesday. This represents a 6.0% appreciation from the previous day’s rate. Throughout the trading day, the Naira reached a high of N1,200 and a low of N1,460 before settling at N1,300/$1 at market close on Wednesday.
In the official market segment, there was a turnover of $416.10 million, significantly higher than the $245.58 million recorded on Tuesday. At the same time, the parallel market also saw the Naira gaining strength, with reports from Abuja’s zone 4 area indicating an exchange rate of N1,270/$1 and above. This signifies a 2.31% appreciation from the previous session.
The recent positive trend in the Naira’s value across both official and unofficial markets comes as the government works to stabilize the currency and mitigate inflationary pressures in the country following a significant depreciation. Nigeria has witnessed periods of low value for its currency due to high forex demand and rising prices of goods and services.
In response to these challenges, the Central Bank of Nigeria (CBN) took action by selling $10,000 to each Bureau De Change operator at a rate of N1,251 per U.S. dollar. This move was aimed at addressing price distortions affecting the Naira exchange rate in the forex markets. Financial experts have attributed the recent gains of the Naira to ongoing government reforms in the forex market.
The efforts to stabilize the currency and boost its value have been welcomed by market participants, leading to positive outcomes for the Naira. The recent appreciation of the Naira reflects the effectiveness of these measures and the market’s response to the reforms.
In conclusion, the Naira’s performance against the US dollar on Wednesday showcased resilience and improvement, supported by increased turnover in the official market and positive sentiment in the parallel market. The government’s reforms and interventions have played a crucial role in strengthening the Naira and restoring stability in the forex market amidst challenging economic conditions.
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