Naira Bounces Back After 1 Week Depreciation, Hits 1,459.02/$1

The Naira showed resilience as it bounced back against the dollar at the end of Wednesday, recovering from a week-long depreciation in both official and unofficial foreign exchange markets.

“I’m glad to see the Naira making a strong comeback,” remarked Mr. Adekunle, a currency trader. “It’s been a tough week, but it’s good to see some stability returning.”

After Wednesday’s trading, the Naira surged by 4.21 percent, with the dollar quoted at N1,459.02, an improvement from the N1,520.40 rate recorded on Tuesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to data from FMDQ Securities Exchange Limited.

The upswing in the Naira’s value was largely attributed to an increase in dollar supply, as buyers and sellers engaged more actively in the market. Dollar supply rose by a substantial 124.56 percent, reaching $289.14 million on Wednesday compared to $128.86 million the day before.

“The increased dollar supply definitely helped stabilize the Naira,” noted Mrs. Obioma, an economist. “It’s a positive sign for our economy.”

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Despite this positive momentum, the Naira experienced fluctuations throughout the day. The intraday high closed at N1,593 per dollar, slightly weaker than the N1,563 recorded on Tuesday. Similarly, the intraday low depreciated to N1,401 on Wednesday compared to N1,350 per dollar on the previous day.

Street trading presented a mixed picture for the Naira, with varied performances observed in different areas. While the local currency concluded at N1,530 per dollar on Tuesday, it exhibited strength by trading at N1,520/$1 in certain locations. However, in other areas, it dipped to N1,550, reflecting the dynamic nature of informal currency markets.

“I’ve seen fluctuations like these before,” remarked Mr. Hassan, a street vendor. “It’s all part of the game. You have to adapt quickly to stay ahead.”

Overall, the Naira’s resurgence against the dollar brings hope for stability in the foreign exchange market, offering a glimmer of optimism for businesses and consumers alike.