Naira Rebounds Against Dollar in Historic First
In a surprising turn of events, the Nigerian naira has experienced a significant appreciation against the US dollar for the first time since last week, according to data from FMDQ. The currency’s value has increased marginally to N1,554.65 against the dollar, a gain of N7.33 compared to the previous day’s rate of N1,561.98.
This development marks a positive shift in the naira’s fortunes, which have been marked by depreciation since last Friday. In that period, the currency lost N52.31 against the dollar. However, the recent appreciation suggests that the naira may be stabilizing, at least in the short term.
The parallel foreign exchange market has also seen the naira appreciate, with the rate decreasing to N1,550 on Thursday from N1,560 the previous day. This increase in value is attributed to a significant surge in foreign currency transaction turnover, which reached $348.82 million on Thursday, according to FMDQ data.
The news comes on the heels of a report by Media Talk Africa, which revealed that Nigeria’s external reserves had reached a one-year high of $35.05 billion as of Monday, July 8, 2024. This increase in reserves may have contributed to the naira’s appreciation, as it suggests that the country has a stronger financial position.
For international investors and traders, this development may signal a more stable outlook for the Nigerian economy. However, only time will tell if this appreciation is a temporary fluctuation or a sign of a more lasting trend.
