Nigeria’s naira rose to a two-month high of N1,382.35 per dollar on Thursday at the official foreign exchange market helped by foreign exchange reforms by the Central Bank of Nigeria (CBN) that have helped boost investor confidence and dollar supply.
The last time the naira closed as strong as Thursday’s rate was on January 29, 2024 when the dollar was quoted at N1,348.63 at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to the data compiled from the FMDQ Securities Exchange.
After trading on Thursday, the naira strengthened by 7.98 percent compared to N1,492.61 quoted on Wednesday at the NAFEM.
At the parallel market however, the local currency depreciated by 1.98 percent as the dollar closed at N1,510 on the day as against N1,480 on Wednesday.
The Central Bank has introduced several policy reforms to improve liquidity in the FX markets in the short, medium, and long term.
According to him, exchange rate volatility moderated, and the spread narrowed to N/US$222.24 from N/US$662.59 post interventions, FX rates depreciated by 10.32 percent on March 8, 2024, where it closed at N/US$1,625.23, compared with N/US$1,473.26 at February 13, 2024.