In an encouraging turn of events, Nigeria’s national currency, the naira, has displayed a remarkable 6.3% increase against the US dollar on the parallel market, reaching an exchange rate of N890 per dollar.

Currency exchange operators in the Victoria Island district of Lagos have reported a consistent upward trend in the naira’s value against the dollar at the street market. These operators have set the buying price for the dollar at N870 and the selling price at N890, yielding a notable N20 profit margin.

A currency trader at the Victoria Island market emphasized the cyclical nature of the dollar’s movement, noting that despite occasional surges, the dollar tends to stabilize over time.

Conversely, currency traders in the Agbara area of Ogun state are witnessing a slightly different scenario, where they currently purchase the local currency at N850/$ and sell it for N860 per dollar.

In the investors and exporters (I&E) forex window, the naira experienced a 4.08% depreciation, closing at N774.77/$ on Tuesday. Notably, the exchange rate reached a peak of N799.9 to the dollar within the day’s trading before settling at N774.77.

Market data reveals that forex transactions amounting to $95.79 million were conducted among dealers during the trading session.

Addressing concerns about the naira’s consistent decline against the dollar, the Central Bank of Nigeria (CBN) pledged to implement new measures to stabilize the currency. Folasodun Shonubi, the acting governor of the CBN, highlighted President Bola Tinubu’s apprehension regarding the situation and emphasized concerted efforts to rectify the issue.

“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,” Shonubi said.

“Some of the plans and strategies, which I am not at liberty to share with you, means sooner rather than later, the speculators should be careful because we believe the things we’re doing, when they come to fruition, may result in significant losses to them.

“But my presence here is more about the concerns the president has and his needs to know that we are doing something about it, assurances of which I have given him totally.

This significant uptick in the naira’s value against the dollar offers a glimmer of hope for Nigeria’s economic stability, with attention focused on the CBN’s forthcoming measures to further bolster the currency’s performance.

Leave a Reply

Your email address will not be published. Required fields are marked *