Nigeria’s national currency, the Naira, on Thursday sustained its exchange rate gain momentum against the US dollar at the parallel market, recording a 2.36% appreciation, to trade at an average rate of N745/$1 from the N763/$1 it exchanged at during Wednesday trading session.
The 2.36% appreciation in value recorded by the local currency against the USD in the day represented the highest appreciation it recorded since 1st December 2022 when it gained 3.52% during the trading session
Some FX dealers attributed the rebounding of the Naira over the past few days partly to business owners’ excitement over the President Bola Ahmed Tinubu’s inaugural address on Monday during which he charged the Central Bank of Nigeria (CBN) to adopt measures to achieve a unified exchange rate for the national currency in the FX market, amongst other monetary measures.
During today’s trading session, the Naira also sustained its Wednesday’s exchange rate against the British Pound Sterling and traded at an average rate of N950/£1.
The Naira appreciated by 0.61% against the Euro during the day’s trading, to trade at an average rate of N815/€1 compared to N955/€ it exchanged at during Wednesday’s trading session.
Data sourced from the Peer-to-Peer (P-2-P) Exchange market, also reflected that the local currency gained, to trade at a minimum of N739.00/$1 and representing 2.70% increase from the N759.50/$1 it exchanged at during the previous day’s trading session.
Over the past years, the Central Bank of Nigeria (CBN) has, as part of its monetary measures to achieve a stable exchange rate for the Naira against foreign currencies, has been supplying dollars to FX traders at both the official window and parallel market..
However, the apex bank suspended FX supply to the parallel market early in March 2020 following its findings that some Bureau De Change (BDC) operators were engaging in FX round-tripping, thereby undermining its monetary goal at the FX market. Since that time, the CBN has not reversed its decision.
