Naira Gains Over 5% Against Dollar at Forex Market, Stays Stable at Parallel Market

The Naira recorded a significant appreciation against the US Dollar at the foreign exchange market on Tuesday, as it closed at N878.61 per dollar, compared to N925.45 per dollar on Monday.

This was a N46.73 or 5.05 per cent increase in the value of the local currency, according to data from FMDQ.

This was the first time the Naira strengthened against the Dollar this week, after losing ground in the previous days. The Naira’s performance was attributed to increased supply and reduced demand for the greenback at the forex market.

However, the Naira maintained its stability at the parallel market, where it traded at N1360 per dollar, the same rate as the previous day.

The parallel market is where currencies are traded unofficially, without the intervention of the Central Bank of Nigeria (CBN).

The forex market witnessed a decline in turnover on Tuesday, as it recorded $58.46 million, a 20.28 per cent drop from the $73.33 million recorded on Monday.

The CBN governor, Olayemi Cardoso, who assumed office in January, will preside over his first Monetary Policy Committee (MPC) meeting on February 26 and February 27, 2024.

The MPC is the highest policy-making body of the CBN, which determines the interest rate and other monetary policy variables.