The Nigerian Naira has shown signs of recovery, appreciating by ₦125 to close at ₦1,275 per US dollar over the weekend, marking a significant improvement from the ₦1,400 rate at the close of trading on Friday.
This appreciation, a notable 9.8 percent increase, has brought a wave of cautious optimism among traders and analysts alike.
The rebound comes amid calls from the Senate, particularly its Committee on Finance, for increased efforts to stabilize the Naira.
During a recent session, the committee highlighted the urgent need for a collaborative approach involving all relevant stakeholders to address the ongoing volatility and depreciation challenges facing the Naira.
Currency traders at the popular Wuse Zone 4 market in Abuja, while speaking to Punch on Sunday, pointed out that trading uncertainties were a primary cause for recent fluctuations in the exchange rate.
They emphasized the government’s critical role in deciding whether to further increase the currency’s value or consider devaluation to ensure market stability.
A trader at the market, Malam Yahu Ibrahim, expressed concerns about the risks associated with trading the Naira due to its instability.
He noted that these risks were becoming increasingly significant, impacting the decisions and operations of currency traders.