In a significant turn of events, the Central Bank of Nigeria (CBN) has successfully made headway in its efforts to counter the declining value of the Nigerian naira against foreign currencies. The impact of the CBN’s intervention was palpable as the naira exhibited a positive response, appreciating against the US dollar on the parallel market, commonly known as the Black Market, on Tuesday.

Following a day when the naira was trading at N956/$ against the dollar, a swift shift was witnessed as it gained strength to exchange for N925/$ the next day. Reports from sources within the parallel market indicated transactions were conducted in the range of “N915/$ and N925/$.”

The Investors & Exporters (I&E) window also saw noteworthy fluctuations. Starting at 785.89/$ and reaching a high of 799.90/$ during the day’s trading, the naira closed at 774.77/$, a marked improvement from the previous day’s closing rate of 764.68/$.

The Acting Governor of the CBN, Folashodun Shonubi, attributed the fluctuating naira rates not only to economic factors but also to speculative demand. In response, the CBN has formulated a yet-to-be-announced policy aimed at eliminating disparities between official and black market rates.

Shonubi further emphasized that the fluctuations witnessed in the parallel market are influenced by speculative rather than purely economic factors. He stated, “We do not believe that the changes going on in the parallel market are driven by pure economic demand and supply, but are touched by speculative demand from people.”

He went on to hint at forthcoming strategies designed to counter these speculative pressures. While not divulging specifics, Shonubi suggested that the CBN’s actions could potentially lead to substantial losses for speculators in the near future.

These developments mark a notable shift in the naira’s trajectory, fueled by the CBN’s commitment to addressing the complex factors impacting its value against foreign currencies.

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