The US Dollar supply in the official foreign exchange market surged by 76.61% to $117.32 million, leading to a marginal appreciation of the Naira. According to FMDQ data, the FX turnover rose from $66 million on Monday to $117.32 million on Tuesday.
As a result of this increase, the Naira appreciated to N1,551.24 per US dollar on Tuesday from N1,574.62 on Monday, marking the currency’s first official market appreciation since last Thursday. However, at the parallel market, the Naira’s value dropped to N1,740.00 on Tuesday from N1,660 per US dollar on Monday.
These developments occurred in the context of recent raids by the Economic and Financial Crime Commission on illegal Bureau De Change operators in Wuse Zone 4, Abuja. Additionally, the Central Bank of Nigeria has implemented various policies in recent weeks aimed at stabilizing the Naira’s value in the foreign exchange market.
One such policy is the issuance of new guidelines by the CBN to discontinue the payout of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) in cash. These efforts reflect the ongoing commitment to addressing the fluctuation of the Naira in the FX market.
The dynamics in the US Dollar supply and Naira’s value continue to be influenced by various regulatory measures and market forces, shaping the landscape of Nigeria’s foreign exchange market.
