Naira bounces back, sells at 1,280/$

Currency traders report a rebound for the Naira against the US dollar in the parallel market, reaching N1280/$ according to recent market data.

This marked a significant improvement, with the Naira appreciating by N120, indicating an 8.57% gain compared to its previous rate of N1,400/$ on Friday.

Currency traders confirmed selling rates ranging from N1,280 to N1,300 per dollar.

Earlier in the week, the Naira had experienced a 33% devaluation within two weeks, dropping below N1,000 against the dollar, only to climb back to N1,400/$ due to increased demand pressures.

This situation led to discussions regarding the impact of the Central Bank of Nigeria’s (CBN) sale of $15.83 million to 1,583 Bureau De Change (BDC) operators. The CBN’s move was part of efforts to enhance foreign currency accessibility for qualified users and stabilize the forex market.

Currency traders attributed the recent Naira depreciation to market dynamics where demand outpaced supply.

Meanwhile, data from FMDQ revealed that the official forex market saw the Naira declining further against the US dollar, closing at N1,339.23/$ on Friday, representing a 2.24% depreciation compared to the previous day’s rate of N1,309.88/$.

Despite these fluctuations, recent initiatives by the CBN have eased forex scarcity, aiding the Naira’s rebound from N1,617 per dollar in early March to N1,072 per dollar on April 17.