The Nigerian naira appreciated by 7.59% against the U.S. dollar on Wednesday, closing at N1,539.65 in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
This significant gain, supported by a 38.94% surge in dollar liquidity, followed an increase in the volume of dollars traded from $100.39 million to $139.48 million.
Intraday fluctuations saw the dollar trade as high as N1,670 and as low as N1,530.This naira appreciation offers short-term economic relief by reducing import costs and potentially easing inflationary pressures.
However, it may challenge Nigerian exporters as their goods become more expensive in foreign markets.
Meanwhile, the parallel market exchange rate remained stable at N1,660 per dollar.
While the naira’s rise is a positive sign for market stability and investor confidence, experts advise careful monitoring to assess the long-term impacts on Nigeria’s economy.