Naira Strengthens, Hits N1400 Against Dollar in Parallel Market

In a notable surge, the Nigerian Naira appreciated to N1400 against the United States dollar in the parallel market on Wednesday, marking a significant strengthening for the local currency.

Operators in the parallel market reported selling rates at N1400/$1, indicating a positive trend for those holding dollars seeking to sell. This development comes amidst a series of recent gains for the Naira, as reported by Nairametrics, attributed in part to speculators offloading their reserves of dollars due to reduced demand.

Just a day earlier, the Naira traded at N1,560.57 per USD, showing a daily gain of N12. This upward trajectory is further highlighted by a substantial increase compared to the rate of N1,617.96 per USD recorded barely a week ago.

Maintaining its position below the N1,600 mark for the second consecutive day, the Naira’s performance signals a sustained resilience, a feat it has upheld for nine days since March 5th, 2024.

While trading close to the N1,600 benchmark at the parallel market, the Naira exhibited a 0.50 per cent appreciation against the USD on Tuesday, an improvement from the previous rate of N1,608 per USD.

The recent appreciation of the Naira against the dollar reflects a positive sentiment in the foreign exchange market, with implications for various sectors of the Nigerian economy. As stakeholders monitor these developments, the focus remains on sustaining this momentum and addressing underlying factors that influence currency performance.