In a significant turn of events, the Nigerian Naira exhibited signs of strength on Friday as it closed at N780.14 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
This marks a remarkable recovery of 21.73 percent from the previous day’s figure, which had stood at N996 per dollar.
Data from FMDQ Securities Exchange, the platform overseeing foreign exchange (FX) trading in Nigeria, revealed that the local currency experienced a fluctuating day of trading. The Naira reached an intra-day trading high of N1,096 and a low of N700.
Transactions commenced at an opening rate of N813 to the dollar, eventually closing at N780. The total value of trades recorded at the official window amounted to a substantial $84.02 million.
The recent surge in the Naira’s value comes as welcome news to the business community and Nigerians at large, who have been grappling with the currency’s persistent depreciation. This positive trend began following the announcement by the federal government that it expected a substantial injection of $10 billion into the FX market.
Further strengthening the Naira’s position against the dollar was the concerted effort by the Central Bank of Nigeria (CBN) to address its FX forwards backlog, a debt that had been identified as a primary factor contributing to the Naira’s decline.
On November 10, the government of Saudi Arabia pledged a “substantial” deposit of foreign exchange to bolster Nigeria’s forex liquidity, demonstrating support for the ongoing forex reforms undertaken by the CBN. This gesture serves as a significant boost to Nigeria’s foreign exchange reserves.
President Bola Tinubu emphasized his administration’s commitment to improving FX liquidity and fulfilling all legitimate foreign exchange obligations. These collective efforts by the government, regulatory authorities, and international partners are providing renewed hope for the stability and resilience of the Nigerian Naira in the face of global economic challenges.