Naira Gains To N1120/$1 As Nigerian Govt Aims To Boost Dollar Supply

The Naira experienced a gain of 1.75 percent against the dollar on the parallel market, reaching N1120/$1 on Thursday.

This upward movement is attributed to growing optimism surrounding the government’s plans to enhance dollar liquidity and digitalize FX transactions.

The government’s initiatives aim to increase dollar supply, promote digital transactions, and discourage speculative demands and hoarding of FX in cash.

Despite a 0.55 percent depreciation of the Naira in the official market, where it was quoted at N874.71, the parallel market showcased resilience.

READ ALSO: Naira Depreciates In Official Market, Black Market On Wednesday

The Naira’s performance on the black market improved with the dollar quoted at N1120 compared to N1140 on the previous day. This shift comes after the Naira experienced a decline to N1140 per dollar on Wednesday due to renewed demand pressure.

At the Nigerian Autonomous Foreign Exchange Market (NAFEM), despite the official market’s depreciation, there was a 60.06 percent increase in dollar liquidity on Wednesday. The volume of dollar transactions rose by the same percentage, reaching $113.52 million.

These developments mark a departure from the Naira’s Tuesday low of N1046.66 per dollar, attributed to a shortage of dollars on the black market. The recent surge to N1120/$1 indicates a 5.55 percent and 8.91 percent depreciation against the dollar compared to the previous rates of N1080/$1 and the average of N1046.66 recorded on Tuesday.