The Nigerian naira experienced upturn in value against the US dollar, with the cost of one dollar plummeting from its peak of N1,310 to N1,140.
On Thursday, the dollar was trading at N1,140 in the black market, marking a 2.56 percent gain from the previous rate of N1,170 on Wednesday.
This sudden appreciation of the naira has been attributed to recent government policies that have left currency speculators uncertain about their positions.
The government’s policies include plans to digitalize foreign exchange transactions and discourage speculative demands, as well as the hoarding of foreign exchange in cash.
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In addition, the Central Bank of Nigeria (CBN) has successfully cleared a significant portion, approximately 75 to 80 percent, of unsettled matured FX forward contracts in banks.
The easing of pressure on the foreign exchange market was evident over the past few days, with the naira gaining ground against the dollar at the official market. On Wednesday, at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira strengthened by 3.59 percent, following a notable 17.96 percent gain on Tuesday.
Data from the FMDQ indicates that the dollar exchange rate was quoted at N786.02 on Wednesday, showing a consistent strengthening trend. This was an improvement from the rate of N815.32 on Tuesday, which itself was a considerable gain from the N993.82 rate quoted on Monday.