Naira Appreciates Against US Dollar At Forex Market

The Nigerian currency, the Naira has appreciated slightly against the US dollar in the foreign market on Wednesday.

Data from FMDQ showed that the Naira recorded a gain to trade at N1418.78 per US dollar on Wednesday from N1,433.89 on Tuesday.

This represents a 1.05 per cent or N15.11 gain compared to 1,433.89 recorded at the close of trading on Tuesday.

However, the Naira recorded a marginal loss at the parallel market, which traded at 1,420 per US on Wednesday from N1,420 on Tuesday.

The development means that Naira is back to how it started the week.

Recall that the Naira took a different outlook on the US Dollar at the Foreign Market amid the Central Bank of Nigeria’s sweeping policy interventions nearly two weeks ago.

The CBN Governor, Olayemi Cardoso, told the members of the House of Representatives on Tuesday that following the bank’s recent policy intervention, the country’s volume of transactions in the exchange market rose to $800 million for the first time.

Recall that in the last seven days, CBN had released four policy reforms to wrestle down the free fall of Naira.

CBN issued ‘Financial Markets Price Transparency and Market Notice of a revision to the FMDQ FX Market Rate Pricing Methodology’ last week, weakening Naira from N891.90 per US dollar on 26th January to N1,410 on Monday.

Also, the CBN released a guideline last Wednesday to curb foreign currency hoarding and speculation.

The country’s apex bank also issued fresh guidelines for International Money Transfer Operators in Nigeria and removed the cap on the exchange rate quoted by IMTOs.