Naira Trades Below 1,280/$ in Both Official and Parallel Markets

The naira kicked off the new month on a positive trajectory, exhibiting strength as it appreciated against the United States dollar to N1,278.58 from its previous rate of N1,309.39 per dollar recorded last Thursday. This marked an encouraging increase of N30.81 by the close of trading activities.

Data sourced from FMDQ Securities reveals that the indicative exchange rate for the Nigerian Autonomous Foreign Exchange Market registered a significant milestone, closing below the N1,300 threshold. This marks the first instance since January 26 of this year, suggesting a promising shift in the currency’s performance.

The naira’s recent journey has been marked by fluctuations, with a notable depreciation to as low as N1,615/$1 on March 13, 2024. However, since the implementation of various forex policies by the central bank, the naira has witnessed an impressive gain of over 21 percent against the dollar since March, underscoring the effectiveness of these interventions in stabilizing the currency.

Liquidity in the forex market has notably improved, thanks to a series of policy reforms initiated by the Central Bank of Nigeria. These reforms include the unification of exchange rate windows, liberalization of the FX market, and clearance of FX backlog obligations for banks and airlines, among others. Such measures have contributed to bolstering investor confidence and fostering economic stability, as evidenced by increased forex turnover and enhanced trading activities within the market.