Naira experienced a remarkable rebound at the official Investors and Exporters (I&E) Window on Tuesday, marking a significant turnaround from the recent days of heightened volatility. The local currency closed at N900/$1 against the N925.34/$1 recorded on the previous day.
This positive development signals a major improvement in the value of the Naira, which had faced severe pressure and had even crossed the N1,000/dollar mark at the official window just over a week ago. The recent fluctuations were attributed to ongoing foreign exchange shortages, with analysts and stakeholders suggesting a potential link between the pressure on the Naira and allegations of hoarding of the US dollar by some bank customers.
At the parallel market, the Naira maintained stability, closing flat at 1,365/dollar on Tuesday, nearly identical to its Monday closing rate.
This marks a slight pause in the downward trend observed in the local currency at the black market. The Naira had recently slid from N1,200/dollar to over N1,300/dollar about a week ago.
Suraju Sani, a Bureau De Change operator in Zone 4, Abuja, noted that the dollar was being sold at N1,350 to the Naira in the capital city. Another operator, Ibrahim Yahu, mentioned a rate of N1,360.
While Aboki FX reported stability for the second consecutive day with a closing rate of N1365/$1 on Monday, official data from the FMDQ Securities Exchange revealed a recovery of N46.73 against the United States dollar.
This positive turnaround follows a recent report from the Central Bank of Nigeria, which indicated that Nigerians spent $1.58 billion on health tourism, foreign education, and other personal matters in the first six months of 2023. The stability in the Naira is seen as a response to this report, providing a boost to the local currency’s value.
The recovery from N925.34/$1 on Monday to N878.61/$1 on Tuesday is a welcomed development for the Nigerian economy, and stakeholders will be closely monitoring the currency’s performance in the coming days.