The naira witnessed a notable surge against the US dollar during Tuesday’s trading session, marking significant gains both at the official window and the parallel market.
At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official exchange rate closed at N1278.58/$1, a considerable improvement from its previous close of N1,309.37/$1 on Thursday, April 28th, indicating a gain of N30.79.
Similarly, on the parallel market, the naira continued its upward trajectory, exchanging at N1,250/$1 compared to its previous rate of N1,300/$1 over the weekend. This signifies a substantial gain of N50.
The surge in the naira’s value can be attributed to sustained liquidity at the NAFEM window and the availability of foreign exchange to Bureau de Change operators throughout the week. These factors have contributed to bolstering confidence in the local currency among traders and investors.
Despite the positive trend, the daily turnover in foreign exchange transactions witnessed a decline, totaling $111.18 million on Tuesday. This marks a significant drop from the previous highest daily turnover of $857 million recorded on Thursday, indicating an 86.96% decrease.
During Tuesday’s trading, the highest spot rate for the naira was recorded at N1,312, while the lowest spot rate stood at N1,250, underscoring the currency’s stability and resilience in the foreign exchange market.
The sustained appreciation of the naira against the US dollar reflects positive sentiment and confidence in Nigeria’s economic outlook. However, analysts continue to monitor external factors and market dynamics that could influence future exchange rate movements.
