Naira’s Resilience: Surging Foreign Currency Supply Sparks 2.36% Gain Against the US Dollar

The Nigerian Naira exhibited resilience on Tuesday, showcasing a marginal gain against the US dollar, fueled by a remarkable 202.97% surge in foreign currency supply, reaching $271.50 million in the foreign exchange market.

According to data from FMDQ, the Naira strengthened to N1,499.07 per US dollar, marking a 2.36% or N35.32 appreciation compared to the previous day’s close at N1,534.39.

In contrast, the Parallel Market witnessed a dip as the Naira slipped to N1,517 per Dollar on Tuesday from N1,495 on Monday.

The fluctuating exchange rates have been a notable trend since the Central Bank of Nigeria introduced comprehensive reforms, including the ‘Financial Markets Price Transparency and Market Notice of a Revision to the FMDQ FX Market Rate Pricing Methodology’ on January 29. This has resulted in a dynamic exchange rate ranging from N1,400 to over 1,500 per US dollar.

CBN governor, Olayemi Cardoso, expressed confidence in exchange rate stability during an interaction with the Senate Joint Committee on Banking, Insurance, and Financial Institutions in Abuja on Friday.

As the Nigerian currency navigates through market fluctuations, the assurance from the CBN governor adds a layer of confidence to the financial landscape. Investors and observers are keenly watching how the Naira will continue to respond to market dynamics in the coming weeks.

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