The United States Dollar supply took a significant hit, dropping by 30.7% to $199.71 million on Friday in the foreign exchange market, despite the ongoing Naira appreciation trend. Data from FMDQ revealed that USD transactions decreased by $88.76 million compared to the previous day’s $288.47 million.
Despite the decrease in FX supply, the Naira saw a slight increase, closing at N1,431.49 per USD at the official market, up from N1,453.28 the day before. In the parallel market, the Naira traded at N1,460 per USD on Friday, down from N1,470 on Thursday.
The Naira has been on a winning streak against the USD for weeks now, with the currency gaining at least 28% in just three weeks. Bismark Rewane, a prominent financial analyst and the Managing Director/Chief Executive Officer of Financial Derivatives Company Limited, believes that the Naira’s appreciation is sustainable as long as the government maintains fiscal and monetary discipline.
This positive development in the foreign exchange market is a testament to the country’s economic stability and prudent financial management. As the Naira continues to strengthen against the USD, investors and stakeholders can look forward to a more robust and resilient economy in the future.
