Naira Surges 0.79% Against Dollar, Hints of Economic Resurgence

Naira on Tuesday gained 0.79 percent (N8) over the dollar as the foreign exchange (FX) resumed after the independence holiday.

The market opened with the dollar trading at N1,000 on Tuesday as against N1,008 on Friday at the parallel market.

At the Investors’ and Exporters’ (I&E) forex window, naira appreciated by 2.59 percent as the dollar was quoted at N755.27 on Friday compared to N775.31 quoted on Thursday last week, data from the FMDQ showed.

The naira’s unexpected surge was attributed to a moderation in demand for the greenback, thanks to anticipation surrounding the next policy action of Olayemi Cardoso, the newly appointed Central Bank of Nigeria (CBN) governor.

Cardoso, confirmed alongside four deputy governors by the Senate, has proposed a radical reset for the apex bank.

His immediate priority is to aggressively address the massive FX obligations, a critical step in tackling the current naira downturn, which has placed a substantial burden on the economy.

This unexpected turn of events has sparked optimism and curiosity in the financial markets as Nigerians eagerly await the new governor’s strategies to strengthen the naira and stabilize the country’s financial landscape.