The Nigerian naira demonstrated a rebound against the United States dollar in the parallel market, closing at 850 naira per dollar. This shift occurred within a few days of the Central Bank of Nigeria (CBN) announcing its intended intervention in the foreign exchange market.
Previously, the naira had been traded at around 950 naira per dollar in the parallel market on Monday. However, it gained momentum and closed at 915 naira per dollar on Tuesday.
Bureau de Change (BDC) operators noted that the demand was lower compared to the previous week. They reported buying and selling the naira at rates such as 830 naira/$ and 850 naira/$.
In the Investor & Exporter forex window, trading commenced at 781.66 naira/$ and reached a high of 799.90 naira/$ before closing at 759.86 naira/$ on Wednesday. This was a slight decrease from the previous day’s closing rate of 781.30 naira/$.
The Acting Governor of the CBN, Folashodun Shonubi, indicated the bank’s commitment to stabilizing the naira against the dollar. He acknowledged that fluctuations in the parallel market were driven not only by economic factors but also by speculative demand. He reassured Nigerians that the CBN was actively working to improve liquidity and achieve stability in the forex market.
A significant development was the Nigerian National Petroleum Limited securing a $3 billion emergency loan to assist in stabilizing the naira. However, analysts remain divided on whether this amount will be sufficient to stabilize the local currency, considering the broader economic context.