Naira Surges: Central Bank’s Strategic Moves Propel Positive Week in Forex Market

In a week marked by significant policy interventions from the Central Bank of Nigeria (CBN), the Naira closed on a positive note against the US Dollar at the Foreign Market. According to data from FMDQ, the Naira appreciated to N1,435.53 per US Dollar on Friday, marking a noteworthy 1.8% gain compared to the previous day’s close at N1,461.90.

This marginal appreciation is the second occurrence in the week, indicating a positive trend in the forex market. The parallel market also reflected this upward momentum, with the Naira trading at 1,440 per US dollar on Friday, up from N1,470 the day before.

Under the leadership of CBN Governor Olayemi Cardoso, the central bank implemented four policy reforms within four days to counter the free fall of the Naira. Among these measures was a guideline issued to curb foreign currency hoarding and speculation, demonstrating the bank’s commitment to stabilizing the national currency.

In a noteworthy move, the CBN also issued fresh guidelines for International Money Transfer Operators (IMTOs) in Nigeria, removing the cap on the exchange rate quoted by these operators. This strategic decision aligns with efforts to enhance flexibility in the forex market.

Despite the challenges faced, the Naira exhibited resilience, appreciating from N891.90 per US dollar traded seven days ago to the current rate of N1,435.53. The central bank’s proactive measures and strategic reforms are contributing to a more stable and positive outlook for the Nigerian currency in the global market.

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