Naira Bounces Back Against US Dollar As New Exchange Rate Emerges

The official foreign exchange (FX) market has witnessed a promising upturn while exchanging with the US dollar.

The naira is currently exchanging at N1,560.57 against the dollar, showcasing signs of strengthening.

This notable improvement, reflecting a 0.79 percent appreciation compared to the previous day’s rate of N1,572.86, underscores the positive impact of recent FX reforms implemented in Nigeria.

According to data from the FMDQ Securities exchange, the naira has experienced a significant recovery, marking a 4.28 percent gain since reaching a low of N1,627.40 per dollar on March 8, 2024.

Tuesday’s trading session demonstrated a volatile yet positive trend, with the naira reaching an intraday high of N1,626.50 per dollar and a low of N1,415/$1, reflecting an encouraging trajectory.

The total foreign exchange market turnover on Tuesday amounted to $195.13 million, indicating a vibrant trading atmosphere conducive to market activities.

Similarly, the parallel or black market also witnessed the naira’s resilience, strengthening to N1,570 per dollar from Monday’s close of N1,590.

Market analysts foresee a continued stabilization of the naira, attributing the optimism to recent policy measures introduced by the Central Bank of Nigeria (CBN).

These reforms, aimed at unifying the FX market, fostering a willing buyer-willing seller framework, eliminating remittance margin limitations, introducing a two-way quote system, and restructuring the Bureau De Change (BDC) sector, are expected to enhance market stability and transparency.

Expressing confidence in the efficacy of these strategic changes, CBN Governor Oluyemi Cardoso emphasized their potential to attract capital inflows, boost liquidity, and bolster the currency.