Nigeria Naira Strengthens by 21.73%, Hits N780/$ in a Week

Nigerian Naira showcased a notable recovery, closing at N780.14 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday. This rate reflects a remarkable 21.73% rebound from the previous week's figure of N996.

According to data from FMDQ Securities Exchange, a platform overseeing foreign exchange trading in Nigeria, the local currency experienced an intra-day trading high of N1,096 and a low of N700. The trading day opened at N813 to the dollar and closed at the impressive N780, with the total value of trades recorded at the official window reaching $84.02 million.

Despite the palpable improvement, the rate remains a point of concern for the business community and Nigerians at large. The naira's recovery gained momentum after the federal government announced an anticipated injection of $10 billion into the FX market.

The Central Bank of Nigeria (CBN) played a pivotal role in strengthening the currency by addressing its FX forwards backlog, a debt previously identified as a primary cause for the continuous depreciation of the naira. Additionally, on November 10, the Saudi government pledged a "substantial" deposit of FX to enhance Nigeria's forex liquidity, expressing support for the ongoing forex reforms by the CBN.

In response to these developments, President Bola Tinubu affirmed his administration's commitment to enhancing FX liquidity and fulfilling all legitimate foreign exchange obligations. While the recovery is evident, the article will delve into the implications of these measures on the