The Naira appreciated to N1,445 against the US dollar in the parallel market from N1,455 per dollar on Wednesday.
Bureau De Change (BDC) operators in Lagos and Abuja said the exchange rate against the US dollar is approximately N1,450–N1,460 for selling and N1,445–N1,455 for buying.
The traders attributed the stability to increased dollar liquidity from remittances and unofficial inflows.
The Naira has appreciated by roughly 2 per cent over the past month, and over the past year, it has gained 15 per cent against the US dollar.
The appreciation of the naira was at its best in October, when it fell below N1500/dollar after many months.
The Nigerian currency closed last month at N1,427.50 per dollar on the official Nigerian Foreign Exchange Market (NFEM) and has been trading steadily in early November between N1,421 and N1,445. Additionally, the exchange rates in the parallel (black) market have come closer to the official levels.
The CBN has tightened monetary policy and increased forex sales under Governor Olayemi Cardoso, reducing speculation. This entails injecting liquidity to reduce demand pressures and more successfully unifying exchange rates.
These actions have helped control inflation by lowering the amount of money in circulation below N5 trillion for two consecutive months (August–September).
