The Nigerian Naira continued its upward trend against the US dollar, with a 50% surge in USD supply reaching $248.75 million. This increase in transactions, as reported by FMDQ data, marks a significant rise from the previous $122.18 million recorded just two days prior.
As a result of this surge in USD supply, the Naira saw further appreciation, standing at N1608.98 per US dollar on Thursday, compared to N1,615.94 the day before. This positive movement in the exchange rate was also reflected in the parallel market, where the Naira traded at an average of N1,610 per USD. The narrowing gap between the official and parallel markets indicates a more stable foreign exchange environment.
In response to these developments, the Central Bank of Nigeria issued a Circular on Thursday, prohibiting commercial banks from profiting from forex revaluation. This move aims to ensure fair and transparent practices in the foreign exchange market, promoting stability and confidence in the Nigerian economy.
Overall, the continued appreciation of the Naira and the increased USD supply demonstrate positive momentum in Nigeria’s foreign exchange market. With a focus on regulatory measures to prevent exploitation, the country is working towards a more sustainable and equitable currency exchange system.
