The Nigerian naira has demonstrated another day of positive performance against the US dollar, reflecting gains in both the parallel market and the official Investors & Exporters (I&E) window. On Thursday, the naira strengthened to N870/$1 in the black market, marking a notable advancement from the N890/$1 recorded the previous day.

Similarly, the official I&E window showcased a remarkable appreciation, with the naira closing at N759.86 per dollar on Thursday, marking a 1.92% increase from the closing rate of N774.77 per dollar observed on Wednesday. In this context, the naira gained an impressive N14.91 against the dollar within a single trading day.

Data from the I&E FX window revealed a dynamic trading day, with the naira commencing at N781.66/$1. The exchange rate experienced fluctuations throughout the day, reaching a peak of N799/$1 and a trough of N740/$1 before eventually settling at N759.86 per dollar by day’s end.

Despite this positive momentum, Wednesday saw a notable drop of 36.17% in forex supply at the I&E window, falling from $95.79 million to $61.14 million within the intraday session, resulting in a $34.65 million reduction in forex turnover.

The ongoing trend of naira gains in both the parallel and official markets has been spurred by the Central Bank of Nigeria’s stern stance against foreign exchange speculators earlier in the week.

Furthermore, the naira’s performance extended to other foreign currencies. Against the British pound, the naira achieved a 2.95% gain, rising from N1185/£1 on Wednesday to N1150/£1 on Thursday.

However, recent data from the central bank indicates a slight decline in Nigeria’s external reserves, which decreased from $33.845 billion to $33.094 billion as of August 15th, 2023. As the naira’s trajectory continues to evolve, market participants and analysts keenly observe the effects of these fluctuations on the nation’s economy and its financial landscape.

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