Following the Central Bank of Nigeria’s (CBN) decision to raise key interest rates, the Naira has seen further improvement against the dollar.
On Wednesday, the official foreign exchange rate showed the Naira at 1,300.43 against the dollar, marking a 6.35 percent increase from the previous day’s rate of 1,482.95. This rise coincided with a significant surge in dollar supply, increasing by 69.43 percent from $245.58 million to $416.10 million.
Data from the FMDQ Securities Exchange revealed that the intraday high for the Naira closed at N1,460 per dollar, stronger than the previous day’s N1,486/$, while the intraday low appreciated to N1,200 compared to N1,300 previously. This fluctuation indicates a notable strengthening of the Naira in response to increased dollar liquidity in the market.
The rise in dollar supply and the strengthening of the Naira suggest positive market sentiment and increased confidence in the Nigerian currency following the CBN’s monetary policy actions. These developments may impact various sectors of the economy, including trade and investment, as market participants adjust to the evolving foreign exchange landscape.
Source: Business Day