How the Naira Recovered Against the Dollar After CBN’s Anti-Speculation Measures

The Nigerian currency, the Naira, has recorded a significant appreciation against the US Dollar in the foreign exchange markets on Thursday. The Naira gained value in both the official and parallel markets, as well as the Binance P2P platform.

According to data from the FMDQ market, the official exchange rate of the Naira to the Dollar was 780.14 Naira per Dollar on Friday, a decrease of 216.61 Naira from the previous day’s rate of 996.75 Naira per Dollar.

In the parallel market, where the Naira is traded unofficially, the exchange rate was 1130 Naira per Dollar on Thursday, down from 1140 Naira per Dollar on Wednesday. A Bureau de Change operator in Abuja, Dayyabu Mistila, confirmed that the Dollar was sold for 1100 Naira on Friday, compared to 1140 Naira on Wednesday.

On the Binance P2P platform, where Nigerians trade cryptocurrencies with each other, the Naira was valued at 1054.2 Naira per Dollar on Saturday morning.

The appreciation of the Naira comes after the Central Bank of Nigeria (CBN) vowed to clamp down on currency speculators who manipulate the exchange rate and create artificial scarcity of foreign exchange. The CBN had also cleared forex backlogs to some commercial banks and airlines last week, which boosted the supply of foreign exchange and strengthened the Naira.

The Naira has been under pressure in recent months due to the decline in oil prices, the impact of the coronavirus pandemic, and the insecurity in the country. The CBN has been implementing various measures to stabilize the exchange rate and conserve the foreign reserves.

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