Naira finally shows positive signs against the U.S Dollar

The Nigerian Naira has finally shown signs of resilience by recording a notable appreciation against the US Dollar in the official foreign exchange market.

According to data from the Financial Markets Dealers Quotations (FMDQ), the Naira surged by N61.38 against the Dollar on Wednesday, marking a significant turnaround from recent downward trends.

The FMDQ data revealed that the Naira strengthened by N1459.02 per Dollar on Wednesday, a considerable improvement compared to N1520.40 recorded the previous day. This remarkable appreciation signifies a remarkable 4.2 per cent gain against the Dollar within a single day.

Similarly, in the parallel market segment, the Naira saw a slight dip to N1515 per Dollar from its previous rate of N1520. This development follows a period where Bureau De Change operators attributed the Naira’s depreciation to insufficient foreign currency allocation by the Central Bank of Nigeria.

The recent positive movement in the Naira’s value comes amidst a challenging economic landscape, where since mid-April 2024, the Naira had experienced a staggering 28 per cent decline against the Dollar. This downward trajectory had raised concerns among analysts and stakeholders about the stability of the Nigerian currency.

Furthermore, this development occurs against the backdrop of Nigeria grappling with soaring inflation, which surged to 33.69 per cent in April 2024. The combination of currency depreciation and high inflation had placed significant pressure on the country’s economy, prompting calls for decisive measures to address these challenges.

While the Naira’s recent appreciation brings a glimmer of hope for stability, analysts remain cautious.