The Nigerian naira exhibited a surge in strength against the US dollar on Thursday, marking a positive turn of events after its recent struggle. The currency closed at 740.67 naira per dollar on the Investor & Exporter forex window, a notable improvement.
This upward momentum follows a sequence of gains that began after the Central Bank of Nigeria unveiled its intention to intervene in the forex market earlier in the week. On Wednesday, the naira closed at 773.17 naira per dollar on the I&E window, displaying the effects of the Central Bank’s announced intervention strategy.
In the parallel market, Bureau de Change operator Yusuf Kareem provided insights, sharing that the naira was traded at 835 and 850 naira per dollar. This reported range was consistent with trading patterns observed on the previous day.
The President of the Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, conversed with The PUNCH about the impact of the Central Bank’s approach. He acknowledged the positive influence of the Central Bank’s efforts, stating, “The Central Bank’s clear message to regulate supply and penalize illicit economic activities among market participants has contributed to the recent strengthening of the naira.”
Gwadabe highlighted the significance of broadening the scope of market participants and employing policies that encourage market democratization. He also emphasized the potential benefits of involving Bureau de Change operators to deepen the market and enhance flexibility in product offerings.
Earlier in the week, the Acting Governor of the Central Bank, Folashodun Shonubi, briefed President Bola Tinubu on the bank’s strategies to counter the naira’s decline. Shonubi expressed the institution’s commitment to implementing new measures aimed at stabilizing the naira against the dollar.
In a separate development, the Nigerian National Petroleum Limited secured a $3 billion emergency loan on Wednesday, with the aim of contributing to the stabilization of the naira’s value. This move reflects ongoing efforts to bolster the currency’s standing in the forex market.