Naira Gains Strength Against Dollar as CBN Unveils New Policies

The Naira ended the week on a positive note, gaining slightly against the US Dollar at the Foreign Market, thanks to the Central Bank of Nigeria’s (CBN) bold policy interventions.

According to FMDQ data, the Naira rose from N1461.90 to N1435.53 per US Dollar on Friday, a 1.8 per cent or 26.37 increase from the previous day’s closing rate.

This was the second time in the week that the Naira showed some signs of recovery. The Naira also improved at the parallel market, where it traded at N1440 per US Dollar on Friday, compared to N1470 on Thursday.

The CBN, led by its Governor, Olayemi Cardoso, has introduced four policy reforms in the last four days to stabilize the Naira, which has been under severe pressure for months.

The CBN issued a guideline on Wednesday to prevent foreign currency hoarding and speculation, and also released new guidelines for International Money Transfer Operators (IMTOs) in Nigeria, removing the cap on the exchange rate quoted by IMTOs.

Despite these efforts, the Naira still remains far below its value a week ago, when it traded at N891.90 per US Dollar.