Naira’s Unexpected Rise Against Dollar Despite Soaring Inflation in Nigeria

The Nigerian currency, the naira, gained against the US Dollar on Wednesday despite the country’s soaring inflation rate.

According to data from FMDQ, the naira firmed against the Dollar to N818/$1 on Wednesday compared to N850.22/$1 exchanged on Tuesday.

The figure represents a N31.23 gain compared to the exchange rate on the previous day.

Meanwhile, at a parallel market, the country’s currency maintained relative stability as it traded at N1120 against the Dollar on Wednesday, the same rate quoted the previous day.

However, Daily24Apps learnt on Thursday morning that the rate is up marginally to N1140 against the US dollar at the parallel market.

The development comes as the National Bureau of Statistics’ latest Consumer Price Index data puts the October inflation rate at 27.33 per cent from 26.72 per cent in September.

The latest inflation rate in Nigeria represents the highest in two decades.