Naira Bounces Back Against Dollar in Parallel Market

The Naira has shown signs of recovery against the United States dollar in the parallel market, climbing to N1280/$, as reported by Nairametrics from currency traders.

Naira Bounces Back, Strengthening Against Dollar in Parallel Market

This surge indicates a significant appreciation of N120, marking an 8.57% gain compared to Friday’s trading rate of N1,400 to a dollar. Traders confirmed selling within the range of N1,280 to N1,300 per dollar.However, earlier in the week, the Naira had experienced a sharp decline, losing one-third of its value within two weeks, dipping below N1,000 against the dollar before rebounding to N1,400 amidst increased demand.

The Central Bank of Nigeria’s injection of $15.83 million to 1,583 Bureau De Change (BDC) operators was questioned by many amidst the currency fluctuations. This intervention, part of CBN’s strategy to enhance forex accessibility and stabilize the market, aimed to provide $10,000 to licensed currency traders at N1,021/$1.

Market dynamics, with demand outstripping supply, were cited as the primary reason behind the recent Naira depreciation. Despite efforts, including recent initiatives by the apex bank, the Naira’s official rate continued its downward trend, closing at N1,339.23/$1 on Friday, representing a 2.24% depreciation.

Nevertheless, the Naira has shown resilience, with recent interventions aiding its recovery from a low of N1,617 per dollar in early March to N1,072 per dollar by April 17.