ON Friday, April 12, the official market saw a sharp increase in the value of the naira, which traded at N1,142.38 to the dollar.
The naira increased by N88.23, according to data from the official trading platform of the FMDQ Exchange, which is in charge of the Nigerian Autonomous Foreign Exchange Market.
This implies a 7.16 per cent rise compared to Monday, April 8, 2024, the previous trading date, when the currency traded at N1,230.61 to the dollar before the Sallah holiday.
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News Agency of Nigeria (NAN) reported on Saturday, April 13, that the overall daily turnover rose to $281.34 million on Friday from $125.55 million on Monday.
In the meantime, the naira traded between N1,265 and N1,100 to the dollar at the Investor’s and Exporter’s window.
In its February and March 2024 policy sessions, the CBN raised interest rates by 600 basis points.
In March 2024, the value of the Nigerian Naira relative to the US dollar increased significantly, signalling a substantial shift in Nigeria’s exchange rate strategy.
The ICIR reported the Bureau De Change’s (BDCs) suggestions that the naira could only sustain gains against the dollar by sustaining liquidity in the foreign exchange market.
According to official figures, the naira increased from N1595.11/$1 at the end of February 2024 to N1309/$1 on the final trading day of the month.
Fatimah Quadri is a Journalist and a Fact-checker at The ICIR. She has written news articles, fact-checks, explainers, and media literacy in an effort to combat information disorder.
She can be reached at sunmibola_q on X or fquadri@icirnigeria.org