The Nigerian Naira has kicked off April on a bullish note as the local currency appreciated to N1,278.58 per dollar from N1,309.39 recorded just last week Thursday.
This represents a gain of N30.81 at the close of trading activity.
Data from FMDQ Securities reveals that this is the first time since January 26 of this year that the exchange rate for the Nigerian Autonomous Foreign Exchange Market will close below the N1,300 price level.
Such a milestone underscores the Naira’s newfound vigor in the face of recent economic challenges.
Just a few weeks ago, the Naira faced pressures, depreciating to as low as N1,615 against the dollar on March 13, 2024.
However, since the implementation of a series of forex policies by the Central Bank of Nigeria (CBN), the Naira has gained over 21% against the dollar.
The liquidity surge in the forex market can be attributed to a range of policies orchestrated by the CBN.
These reforms, including the unification of exchange rate windows, liberalization of the FX market, and clearance of FX backlog obligations, have collectively fostered a more vibrant forex market.
Forex turnover, a critical metric reflecting the total value of all foreign exchange transactions, has surged, indicating heightened market activity and participant engagement.
In the last two weeks alone, the CBN and other banking institutions injected $2.5 billion into the forex market, further bolstering liquidity.
Currency traders and analysts alike remain optimistic about the Naira’s outlook.
The appreciation is attributed to decreased demand for the greenback and the CBN’s strategic decision to supply foreign exchange directly to operators.
As the Naira continues to show resilience and gain ground, stakeholders anticipate a sustained positive trajectory in the coming weeks, underlining the effectiveness of the CBN’s policy measures in stabilizing the currency and driving economic growth.
