The naira continued to appreciate against the United States dollar on Thursday, closing at 1,382/$ at the official market.
This shows an appreciation of N18 or 1.3 per cent compared to the previous day, a development that was attributed to increased dollar supply at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to data from the FMDQ Securities Exchange Limited.
On Wednesday, the local currency recorded major gains at both the official and parallel foreign exchange markets, closing at N1,400/$ at the black market.
The intraday high closed at N1,598 per dollar on Thursday, stronger than N1,620 it closed at on Wednesday. Also, the intraday low strengthened to N1,300/$ on the same day, stronger than N1,350/$1 closed at on the previous day.
The dollar supplied by FX market players increased to $288.47, an increase of $2 or 7.46 per cent from $268.29 million recorded on Wednesday from $195.13 million at NAFEM.
The naira has gained N500 against the dollar in the last few weeks, from a record low of about N1900/$ at the parallel market.
The pressure on the naira/dollar exchange rate is gradually lessening, with Nigeria’s external reserves showing sustained growth over the past month, just as the Central Bank of Nigeria declared on Wednesday that it has successfully cleared all valid foreign exchange backlogs.
Data from the CBN shows that foreign currency reserves rose by 3.62 per cent to $34.37 billion as of March 12, 2024, compared to $33.17 billion recorded at the beginning of February 2024.
The CBN also reported a significant surge in Diaspora remittances, which grew by 433 per cent to $1.3 billion in February, compared to $300 million in January
Meanwhile, the Presidency has warned currency speculators to desist from unpatriotic acts against the national currency, saying racketeers would have their fingers burnt.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, has cautioned currency traders speculating on foreign exchange to sell their dollar holdings, stating that the naira is expected to increase in value soon.
He advised speculators to sell off their dollars to prevent potential losses.
Onanuga said, “With backlog FX settled, Naira is set to appreciate further, faster. Currency speculators should quickly dump their stock of dollars “to avoid sorrows and tears.”
