Naira bounces back, appreciates against US Dollar at forex market

The Country's currency, the Naira, appreciated against the US Dollar on Thursday at the official foreign exchange market.

Official data from FMDQ disclosed that the Naira appreciated N843.07/$1 on Thursday from N951.22/$1 on Wednesday.

This represents a 108.15 gain in the local market compared to the N951.22/$1 it closed on Wednesday.

Torizone reports that the Naira depreciated against the US Dollar this week for the first time.

This is as dollar supply fell by 4.94 per cent to $135.58 million from $142.63 million on Wednesday.

Meanwhile, the Naira maintained stability in the parallel market, exchanging at N1175/$1 and 1170/$1 on Thursday compared to Wednesday.

The Central Bank of Nigeria has also increased the exchange rate for cargo clearance from N783/$ to N952/$ amid the foreign exchange crisis.

Recall that the Governor of CBN, Dr Olayemi Cardoso, speaking at the Chartered Institute of Bankers of Nigeria (CIBN) 50th-anniversary barely two weeks ago, expressed optimism over the stability of Naira.

"I'm confident and optimistic that by taking appropriate corrective actions and strategic steps, we can restore macroeconomic stability and address fundamental flaws," he stated.

Despite his assurance, the Naira has continued to experience fluctuations in the FX market since June 14, when CBN floated the Country's currency.

Reacting to the development, a financial analyst, Prof Godwin Oyedokun, had blamed Nigeria's forex crisis on weak economic fundamentals, low foreign reserves, increased external debts and a double forex window.