Naira Holds Strong as USD Supply Surges: Forex Market Update

The supply of US Dollars surged by 38.9%, while the Nigerian Naira continued to uphold its significant gains in the forex market.

According to data from FMDQ, USD transactions skyrocketed to $195.13 million on Tuesday, marking a substantial increase from $140.45 million recorded just a day earlier.

This surge in USD supply has contributed to the Naira’s sustained appreciation. On Tuesday, the Naira traded at N1,560.57 per USD, showcasing a significant gain compared to Monday’s rate of N1,572.82.

The daily increment of N12 in the Naira’s value against the USD is particularly noteworthy. Moreover, this surge represents a staggering N57.36 gain compared to the rate of N1,617.96 per USD recorded barely a week ago.

Remarkably, the Naira has managed to stay below the N1,600 per USD mark for two consecutive days, a feat it has maintained for nine days since March 5th, 2024.

Despite fluctuations, the parallel market saw the Naira holding steady, trading close to the N1,600 per dollar benchmark.

In Tuesday’s trading, the Nigerian currency exhibited a 0.50% appreciation against the USD, improving from the prior rate of N1,608 per USD.

The robust performance of the Naira amidst a surge in USD supply underscores the resilience of Nigeria’s forex market and provides optimism for its stability in the near term.