Naira gains more strength against the U.S dollar

What is the current naira to dollar exchange with the Nigerian currency gaining weight recently?

The Nigerian naira has demonstrated a noteworthy appreciation against the United States dollar, reaching N1,278.58 compared to N1,309.39 per dollar recorded the previous week on Thursday, March 28.

Data sourced from FMDQ Securities indicates that this indicative exchange rate marks a significant milestone as it falls below the N1,300 ceiling for the Nigerian Autonomous Foreign Exchange Market. This achievement stands as the first instance since January 26 of this year.

The strengthening of the naira against the dollar is attributed to a series of forex policies implemented by the Central Bank of Nigeria (CBN). These policies have resulted in a remarkable 21% gain for the naira against the dollar since March.

The surge in liquidity within the forex market is directly linked to various reforms instituted by the CBN. Key among these reforms is the unification of exchange rate windows, liberalization of the FX market, and the clearance of FX backlog obligations for banks and airlines.

Additionally, the implementation of a Price Verification System, imposition of limits on banks’ Net Open Position, removal of the daily cap of N2bn on remunerable Standing Deposit Facility, and an overhaul of the Bureau De Change segment have all contributed to the increased liquidity.

The strengthening of the naira against the dollar is being closely monitored by stakeholders, signaling a positive trajectory for Nigeria’s economic stability amidst ongoing currency fluctuations and global economic challenges.