The naira rose against the dollar on Thursday, closing at 740.67/$ on the Investor & Exporter FX window.
The naira closed on the I&E window on Wednesday at 773.17/$, continuing its upward trend that began after the Central Bank of Nigeria announced its intention to intervene in the foreign exchange market on Monday.
The President of the Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, explained that the announcement of the CBN was having an impact on the forex market.
“He is clear on his message to calibrate supply and sanction illegal economic behaviour of market participants, and this has positively impacted the recent positive naira strength in the market,” he said.
“However, now that we have the willing buyer and willing seller model, there is a need for operational and policy democratization and de-monopolization of market participants.
“In order to expand the product breadth and deepen the market, BDCs must be utilized.”
The CBN’s acting governor, Folashodun Shonubi, announced on Monday that further steps would be taken to stabilize the naira versus the dollar after updating President Bola Tinubu at the State House in Abuja on the bank’s efforts to stop the currency’s drop.
The Nigerian National Petroleum Limited obtained a $3bn emergency loan on Wednesday to help stabilize the naira.