BREAKING: Naira Hits 7-Month High Amidst CBN Policies

On Thursday, the naira surged dramatically, reaching its strongest position in seven months at N1,485.95 per dollar.

This remarkable uptick can be traced back to the strategic policies implemented by the Central Bank of Nigeria (CBN), which have reshaped market dynamics and bolstered the currency’s resilience.

To understand the significance of this moment, one must look back just seven months; the naira stood at a comparable N1,485.53 per dollar in the official market on June 20, 2024. This latest leap signifies a remarkable return to that range, evidencing the positive impact of the CBN’s recent monetary and foreign exchange initiatives designed to stabilise the currency and restore market confidence.

After Thursday’s trading session, the naira climbed by an impressive 1.67 percent, translating to a gain of N24.8. The dollar was quoted at N1,485.95, a striking contrast to the N1,510.72 seen just a day earlier on the Nigerian Foreign Exchange Market (NFEM), according to data from FMDQ Securities Exchange Limited.

However, the landscape remains complex. Authorised currency dealers reported the dollar’s value fluctuating between N1,516 at its peak and N1,470 at its lowest on the NFEM. In the parallel market, often referred to as the black market, the naira faced a slight setback, losing 0.6 percent or N10, with the dollar priced at N1,635 on Thursday, up from N1,625 on Wednesday.

Amid these shifts, the CBN has stepped up its game, recently introducing a new Foreign Exchange (FX) Code aimed at enhancing market liquidity and transparency, and guiding participants through Nigeria’s evolving foreign exchange landscape.