Naira Strengthens as Dollar Supply Surges by 117% in Foreign Exchange Market
The Nigerian Naira has experienced a significant boost in the foreign exchange market, with the supply of the US Dollar and other currencies increasing by a staggering 117% on Friday. According to data from FMDQ, the foreign exchange transaction turnover rose to $190.57 million on Friday, a substantial increase from the $87.51 million recorded on Thursday.
This surge in liquidity has led to a strengthening of the Naira, with the currency appreciating against the Dollar to N1,541.52 and N1,663 on Friday. This marks a significant improvement from the N1,546.41 and N1665 exchange rate recorded on Friday last week.
The development is seen as a positive sign for the Nigerian economy, which has been grappling with currency fluctuations and liquidity issues in recent times. The Central Bank of Nigeria has announced that it will hold its 297th Monetary Policy Committee meeting next week to discuss interest rates and other monetary policy measures.
The increased supply of the Dollar and other currencies in the foreign exchange market is expected to have a positive impact on trade and investment in Nigeria. The strengthening of the Naira will make it more attractive to foreign investors, who will be encouraged to invest in the country’s economy.
The FMDQ data also shows that the Naira has appreciated slightly against the Dollar over the past week, indicating a growing confidence in the currency. This is a welcome development for the Nigerian economy, which has been plagued by currency fluctuations and liquidity issues in recent times.
The strengthening of the Naira is expected to have a positive impact on the economy, with increased foreign investment and trade expected to boost economic growth. The Central Bank of Nigeria’s announcement of a Monetary Policy Committee meeting next week to discuss interest rates and other monetary policy measures is also expected to have a positive impact on the economy.
Overall, the strengthening of the Naira and the surge in the supply of the Dollar and other currencies in the foreign exchange market is a positive development for the Nigerian economy. It is expected to have a positive impact on trade and investment, and will provide a boost to economic growth in the country.
