Discover the recent resurgence of the Nigerian naira to 1,459.02 per dollar after a week of decline across official and unofficial foreign exchange markets. Explore the factors contributing to this turnaround and its impact on currency stability and economic sentiment in Nigeria's financial landscape.
The Nigerian naira has staged a remarkable recovery, bouncing back to 1,459.02 against the US dollar following a week of depreciation in both the official and unofficial foreign exchange markets.
Data from the FMDQ Securities Exchange Limited revealed a significant appreciation of 4.21 percent, with the dollar quoted at N1,459.02, a notable improvement from N1,520.40 reported just a day earlier. This resurgence was attributed to increased dollar supply, which surged by 124.56 percent to $289.14 million, indicating heightened activity among willing buyers and sellers. While the intraday high closed at N1,593 per dollar, slightly weaker than the previous day, the intraday low also saw a depreciation to N1,401.
Street trading mirrored this mixed performance, with the naira displaying instances of both appreciation and weakening. Despite closing at N1,530 per dollar on Tuesday, the currency exhibited strength in certain trading areas at N1,520/$1, while in others, it experienced a slight dip to N1,550.
The naira's resurgence marks a significant development in the forex market, raising hopes for stability and resilience in Nigeria's economy amidst prevailing uncertainties.
