Naira Appreciates Against Dollar, Hits N844/$1 - The Top Society

Naira Appreciates Against Dollar, Hits N844/$1

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In a positive turn of events, the Nigerian Naira experienced a significant appreciation against the US dollar at the official foreign exchange market, according to official data from the Financial Markets Dealers Quotations (FMDQ). At the close of work on Monday, the Naira was reported to have strengthened to N844.85 against the US dollar, marking a noteworthy 5.15% increase compared to the previous close of N888.35/$1.
This marks the second time in recent weeks that the country’s domestic currency has demonstrated resilience and strengthened against the US dollar at the official market. The positive momentum is a welcomed development for the Nigerian economy.
However, in a parallel development, the forex turnover at the close of trading stood at $111.76 million, reflecting an 18.91% decrease compared to the previous day. Despite the dip in turnover, the appreciation of the Naira against the US dollar signals a positive trend in the official foreign exchange market.
Naira Appreciates
Meanwhile, the Naira experienced a marginal drop at the parallel market, exchanging at N1,240/$1 on Tuesday, down from N1,235/$1 on Monday. This slight decline underscores the volatility present in the currency exchange landscape.
Governor of the Central Bank of Nigeria, Olayemi Cardoso, provided insights on the currency’s future trajectory during his appearance before the National Assembly joint committee on Banking and Insurance last week. Cardoso expressed optimism, stating that exchange rate pressures are expected to significantly reduce in 2024, attributing this positive outlook to the smooth functioning of the foreign exchange market.
The recent fluctuations in the Naira’s value come on the heels of FX reforms introduced by the apex bank on June 14. As the market continues to adapt to these reforms, stakeholders will closely monitor the currency’s performance in the evolving financial landscape.
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