On Friday, Nigeria’s currency, the Naira, experienced an upward trend against the US Dollar in the foreign exchange market.
Official data from FMDQ revealed that the Naira strengthened to N794.89 against the dollar by the close of Friday’s trading session, marking a significant increase from its position at N956.33 on Thursday. This showcased a notable gain of N161.44 or a 20.31% rise at the official forex market compared to the previous day’s closing rate.
Likewise, at the Parallel Market, the Naira saw a marginal improvement, trading at N1,115 per dollar on Friday, as opposed to N1,170 per dollar recorded on Thursday. This upward movement signaled the currency’s first rise since the beginning of the week.
Despite this positive trajectory, the country’s forex turnover stood at $75.82 million by the end of trading, reflecting a decline of 28.13% compared to the previous day.
In a related context, Dr. Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), addressed concerns about the fluctuating exchange rates impacting business growth. Speaking at the Chartered Institute of Bankers of Nigeria (CIBN) 50th-anniversary event on Friday, Dr. Cardoso pledged the CBN’s commitment to transparency and fairness in its operations to address these challenges.
“The removal of petrol subsidy and the adoption of a floating exchange rate and other government policies are anticipated to affect the economy in the medium term positively.
“I’m confident and optimistic that by taking appropriate corrective actions and strategic steps, we can restore macroeconomic stability and address fundamental flaws,” he stated.
Recall that Cardoso failed to hold a Monetary Policy Committee meeting for the second time in two months.
Nigeria’s FX market has continued to experience a crisis since CBN introduced reforms in June this year.
