The naira appreciated against the dollar at the official foreign exchange market, closing at N1593.62 per dollar, up from N1596.52. The Central Bank of Nigeria’s recent $876.26 million sale to banks and the Retail Dutch Auction System contributed to this positive trend, signaling potential stability in the forex market.
The naira continued its upward trend against the dollar in the official foreign exchange market, showcasing a notable appreciation.
According to FMDQ data, the naira strengthened by N2.9 on Thursday, closing at N1593.62 per dollar, compared to N1596.52 on Wednesday.
This positive movement was observed across both official and parallel markets. Earlier reports indicated that the naira traded at N1610 per dollar in the black market on Thursday, reflecting a general improvement in its value.
The Central Bank of Nigeria (CBN) played a crucial role in this development. On Wednesday, the CBN initiated the Retail Dutch Auction System, selling $876.26 million to 26 banks at a rate of N1495 per dollar. This intervention is seen as a strategic move by the apex bank to stabilize the naira and manage liquidity in the forex market.
Analysts are closely watching the currency’s trajectory, as further appreciation could bring relief to importers and other market participants who have faced challenges due to the naira's previous volatility.
