The Naira experienced a slight appreciation against the US dollar in the foreign exchange market on Wednesday, as indicated by data from FMDQ.
The Naira’s value improved to N1418.78 per US dollar, reflecting a 1.05% or N15.11 gain compared to the previous day’s closing rate of N1,433.89.
However, at the parallel market, there was a marginal loss, with the Naira trading at 1,420 per US dollar on Wednesday, the same rate as Tuesday.
This development follows the Central Bank of Nigeria’s (CBN) recent policy interventions aimed at stabilizing the Naira. CBN Governor Olayemi Cardoso reported an increase in the country’s volume of transactions in the exchange market, reaching $800 million for the first time.
The CBN implemented four policy reforms in the last seven days to address the free fall of the Naira.
Last week, the CBN issued the ‘Financial Markets Price Transparency and Market Notice of a revision to the FMDQ FX Market Rate Pricing Methodology,’ leading to a depreciation of the Naira from N891.90 per US dollar on January 26 to N1,410 on Monday.
Additionally, guidelines were released to prevent foreign currency hoarding and speculation, and new guidelines for International Money Transfer Operators (IMTOs) were introduced, removing the cap on the exchange rate quoted by IMTOs.
While the Naira’s appreciation in the foreign market is noteworthy, the parallel market’s marginal loss indicates ongoing fluctuations.
The CBN’s interventions aim to bring stability to the foreign exchange market and curb the challenges faced by the Naira.
Monitoring these developments is crucial as the Nigerian economy navigates the impact of various policy measures on its currency.
