Simon Oluwatobi, reporting
The Nigerian naira demonstrated a substantial 27.16% appreciation, concluding at N864.29/$ on the official Investors and Exporter window on Monday.
Concurrently, the daily turnover of the dollar witnessed a significant 86.83% surge, reaching $132.46 million by the close of trading, marking a notable increase from the $70.90 million recorded the previous Friday.
This positive development signifies a substantial N234.76 gain from the recent historical low of N1099.05/$, as per data sourced from the FMDQ Securities Exchange.
The trading session on Monday commenced at N867/$, attaining a pinnacle of N1185.10/$, subsequently dipping to a low of N720/$, ultimately settling at N864.29/$. The daily dollar turnover, reaching $132.46 million, underscores a gradual recovery for the national currency, which has been navigating a volatile trajectory since the removal of the rate cap by the Central Bank of Nigeria.
In the aftermath of the CBN’s initiative to unify rates, the country’s foreign exchange reserves have experienced a decline of approximately $1.6 billion, presently standing at $32.97 billion. This reduction in reserves is identified as a primary factor contributing to the recent depreciation of the naira.
The Economist Intelligence Unit has recently expressed reservations about Nigeria’s capacity to uphold its exchange rate unification policy, citing insufficient firepower in its foreign exchange reserves.
The report articulates concerns about the stability of the naira, projecting periodic devaluations due to elevated inflation rates and persisting disparities with the parallel market.
Addressing these challenges, CBN Governor Olayemi Cardoso acknowledged the need for comprehensive measures and revealed plans to introduce new foreign exchange guidelines to foster market stability.
He underscored the importance of transparent and harmonized rules, indicating that extensive consultations with banks and FX market operators would precede the implementation of any new regulatory measures.