Emmanuel Ochayi
The Naira staged a recovery, appreciating by 19.17% against the dollar at the official market on Thursday, January 11, 2024.
Closing at N874.79 to a dollar, the local currency showed a remarkable gain of N207.53 compared to its record low on the previous day.
“This rebound signifies a positive shift in market dynamics,” remarked a financial analyst, emphasizing the significance of the Naira’s resurgence.
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While the official market witnessed this notable climb, the parallel forex market experienced a 0.40% depreciation, highlighting the complex dynamics influencing the nation’s currency.
The injection of $2.25 billion by Afreximbank into Nigeria’s FX market played a pivotal role in this recovery.
The financial arrangement, signed on December 29, 2023, involved key players like UBA, NNPC, and major oil trading firms. This facility, totaling $3.3 billion, aims to address the acute liquidity shortage in Nigeria’s FX market, providing a boost to the official trading window.
The market also observed a 54.49% decrease in forex turnover at the close of trading, indicating potential shifts in trading patterns following this injection of funds.
This development brings renewed hope for the Naira’s stability, as stakeholders collaborate to navigate the challenges in Nigeria’s FX market.
