The Nigerian currency, the Naira, has shown remarkable improvement, exchanging for N1400 against the US dollar in the parallel market as of Wednesday. This notable appreciation marks a significant turnaround in the currency’s performance, with parallel market operators offering N1400/$1 for those wishing to sell their dollars.
According to Nairametrics, this strengthening of the Naira comes amid a decline in demand, leading speculators to offload their dollar reserves. The exchange rate has seen a considerable gain recently, with the Naira trading at N1,560.57 per USD on Tuesday, up from N1,572.82 on Monday — a daily gain of N12. This improvement is even more pronounced compared to the rate a week ago, where it traded at N1,617.96 per USD, highlighting a significant gain of N57.36.
The Naira has managed to stay below the N1,600 per USD mark for the second consecutive day, a feat it has maintained for nine days since March 5th, 2024. In the parallel market, the Nigerian currency has remained stable, closely hovering around the N1,600 per dollar benchmark. On Tuesday, the Naira appreciated by 0.50 percent against the USD, improving from a previous rate of N1,608 per USD.
This trend of appreciation signals a positive outlook for the Naira, as reduced demand for the dollar and the dumping of dollar reserves by speculators contribute to the strengthening of the local currency. The recent performance of the Naira in the foreign exchange market is a welcome development for the Nigerian economy, suggesting potential impacts on inflation, import costs, and overall economic stability.
