Naira Continues Appreciation Trend in Forex Markets

The Nigerian naira sustained its upward trajectory against the United States dollar across forex markets on Wednesday, marking significant gains in both official and unofficial segments. Market data collected from various sources revealed this positive trend.

According to data published on the FMDQ website, the naira closed at N1,300/$1 on Wednesday, representing a notable appreciation from the previous session’s close of N1,382.95/$1. This marks a 6.0 per cent increase in value within a day.

Throughout the trading day, the local currency fluctuated between an intraday high of N1,200 and a low of N1,460 against the dollar before settling at N1,300/$1 at the close of business.

In the official market segment, foreign exchange turnover amounted to $416.10 million, a substantial increase compared to the $245.58 million recorded on Tuesday.

Similarly, the naira’s appreciation trend persisted in the parallel market. A survey conducted by PREMIUM TIMES at the Abuja zone 4 axis revealed that the naira was traded at N1,270/$1 and above on Wednesday afternoon, indicating a 2.31 per cent appreciation from the previous session’s rates.

These recent gains come amidst ongoing government efforts to stabilize the currency and curb inflationary pressures following previous declines in its value. The Nigerian government has implemented measures and reforms to safeguard the foreign exchange market and address speculative activities.

Earlier in the week, the Central Bank of Nigeria (CBN) announced the sale of $10,000 to each Bureau De Change operator at a rate of N1,251 per U.S. dollar, aimed at addressing price distortions affecting the naira exchange rate in the forex markets.

Financial experts attribute the naira’s recent gains to these ongoing government reforms, which seek to bolster confidence in the currency and mitigate economic uncertainties.