The Nigerian naira saw a significant appreciation against the U.S. dollar in the official foreign exchange market on Thursday, driven by a surge in foreign exchange supply. According to data from the FMDQ Securities Exchange, the naira strengthened from N1,681.65 to N1,639.50 per dollar, marking an improvement of N42.15 in a single day.
Despite this gain in the official market, the naira faced depreciation in the black market, where it fell to N1,750 per dollar, down from an earlier range of N1,720 to N1,735 recorded on Wednesday. This fluctuation highlights the ongoing challenges in Nigeria’s foreign exchange environment, where official and parallel market rates often diverge due to varying levels of supply and demand.
The rise in the naira’s value on the official exchange coincided with an uptick in FX transaction turnover, which increased to $244.96 million on Thursday, up from $196.78 million recorded the previous day. Market observers believe this boosted turnover may be linked to recent Central Bank of Nigeria (CBN) efforts aimed at stabilizing the currency and addressing liquidity issues in the FX market.
However, despite these interventions, the naira has continued to show volatility against the dollar. The contrasting trends between the official and black market rates underline the complexities Nigeria faces in managing foreign exchange stability.
