NAIRA GAINS AS BANKS OFFLOAD DOLLARS INTO FOREIGN EXCHANGE MARKET
Written by Oyebamiji Idowu on February 1, 2024
Pressure on Nigeria’s foreign exchange market eased significantly on Wednesday as commercial banks responded to the Central Bank of Nigeria’s (CBN) 24-hour ultimatum to sell excess dollars. Banks offloaded dollars into the official market, leading to an 85.36% increase in dollar transactions compared to the previous day.
This surge in activity pushed the daily foreign exchange turnover to $134.07 million, up from $72.33 million. Consequently, the naira appreciated by 1.85%, closing at N1,455.59 per dollar on the official market, according to data from FMDQ. This marks a reversal from the all-time low of N1,482.57 reached on Tuesday.
The CBN’s intervention appears to be yielding initial results, suggesting its efforts to stabilize the volatile exchange rate may be gaining traction. However, it remains to be seen if this positive trend will be sustained in the long term.
Source: Jordan105.5fm News Bulletin.