The naira, on Wednesday, continued its gain against the United States dollar, appreciating both at the official foreign exchange and parallel markets, to the delight of many Nigerians.
At the Nigerian Autonomous Foreign Exchange Market, the naira appreciated by N16 or 1.26 per cent as the dollar was quoted at N1,262.85/$ on Wednesday, stronger than N1,278.58 closed on Tuesday, according to FMDQ data.
Several foreign exchange policies implemented by the Central Bank of Nigeria to increase dollar supply and improve transparency in the Foreign Exchange market have also played a role in strengthening the local currency, according to The Punch
The CBN had On June 14, 2023, abolished market segmentation and collapsed all into Nigerian Autonomous Foreign Exchange, and re-introduced the Willing Buyer, Willing Seller framework, among other reforms.
Also, The Central Bank of Nigeria ordered the international money transfer operators to quote an exchange rate for naira payment to beneficiaries based on prevailing market rates in January 2024.
The Central Bank in February, restricted the payout of Personal and Business Travel Allowance to electronic channels.
Currency dealers attributed the naira’s appreciation to falling dollar demand and a decision by the Central Bank of Nigeria to sell foreign exchange to operators.
