The Nigerian Naira appreciated against the US dollar throughout March 2024, a substantial milestone in the country’s exchange rate policy.
Official figures indicate that the Naira closed the month at N1309/$1 on the last trading day, reflecting a 21.8% gain compared to its position at the end of February 2024, where it stood at N1595.11/$1.
This surge in the value of the Naira represents the success of various forex policies, strategies, and interventions implemented by the Central Bank of Nigeria (CBN) aimed at stabilizing and fortifying the national currency.
Notably, these policies have not only bolstered the Naira’s position in the official market but have also had a profound impact on the parallel market, where the Naira experienced an even more pronounced recovery.
Key drivers behind the Naira’s appreciation include stringent measures to curb foreign currency speculation and hoarding by Nigerian banks, ensuring that genuine demand for forex is met.
Also, the complete clearance of the valid foreign exchange backlog by the CBN, totaling $1.5 billion, has contributed significantly to restoring confidence in the currency.
Furthermore, policies targeted at the retail end of the market, such as allocating competitive rates to Bureau De Change (BDC) operators and removing the exchange rate cap for International Money Transfer Operators, have played a pivotal role in strengthening the exchange rate at this level.
Overall, the Naira’s remarkable appreciation underscores the effectiveness of the CBN’s interventions and signals a positive trajectory for Nigeria’s exchange rate stability.