The Nigerian Naira gained 0.58% against the United States Dollar on Monday amid a tightening supply of the greenback in the official foreign exchange market.

The Naira’s upward trajectory saw it closing at N1,617.96 per dollar, a considerable improvement compared to the N1,627.40 recorded on the preceding Friday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to data sourced from the FMDQ Securities.

Market analysts attributed the Naira’s strengthening to heightened demand for the local currency, which materialized following the Central Bank of Nigeria’s recent decision to hike the Monetary Policy Rate (MPR) by 400 basis points to 22.75%.

This move aimed to recalibrate the monetary policy stance amidst prevailing economic challenges.

During Monday’s foreign exchange market trading session, the intraday high saw the Naira reaching N1,650 per dollar, while the intraday low dipped to N1,511 per dollar.

This fluctuation reflects the evolving dynamics of currency trading and investor sentiments.

The supply of the US Dollar witnessed a significant decline, plummeting by 67.56% to $96.13 million from the $296.35 million recorded on the previous Friday.

This reduction in supply further contributed to the Naira’s ascent against the greenback.

At the parallel market, commonly known as the black market, the Naira traded between N1,610 and N1,620 against the US Dollar on Monday, with the official and parallel market rates converging closely.

The strengthening of the Naira against the Dollar underscores the evolving dynamics of Nigeria’s foreign exchange landscape and its resilience amidst economic adjustments and policy shifts.