Naira Rallies Against Dollar in Official Market Amid Increased Transactions
The Nigerian naira has experienced a rare respite from its recent decline against the US dollar, appreciating slightly at the official foreign exchange market on Thursday. According to FMDQ data, the currency strengthened to N1659.26 per dollar, representing a N9.93 appreciation against the dollar compared to the previous day’s rate of N1669.19.
The naira’s gains were not limited to the official market, as it also appreciated at the parallel market, closing at N1680 per dollar on Thursday, a N10 strengthening compared to the previous day’s rate of N1690. This upward momentum is attributed to a significant increase in foreign exchange transaction turnover, which reached $450.39 million on Thursday, up from $176.45 million on Wednesday.
This positive trend is a welcome development, as the naira had recorded losses against the dollar at the official FX market in the past two days. The recent gains suggest that the currency is beginning to stabilize, potentially buoyed by increased foreign investment and a rise in trade activities.
The news has been met with optimism, as a stronger naira can have a positive impact on the country’s economy. It can lead to increased purchasing power, improved trade balances, and potentially even attract more foreign investors to the country.
The naira’s performance at the official market is being closely monitored, and further gains could be expected if the trend continues. With the country’s economy gradually recovering from the COVID-19 pandemic, a strengthening naira could be a significant boost to its recovery efforts.
