The Naira has continued its gain against the US dollar on Wednesday.
Nigeria’s currency has appreciated both at the official foreign exchange and parallel markets.
At the Nigerian Autonomous Foreign Exchange Market, the naira gained 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, data from the FMDQ Securities Exchange indicated.
This means the local currency hasSteady dollar supply pushes naira to 1,262/$ continued its positive streak against the green with expectations of further appreciation.
The appreciation of the local currency was attributed to the several foreign exchange policies implemented by the Central Bank of Nigeria, to boost dollar supply and enhance transparency in the FX market.
On June 14, 2023, the CBN abolished market segmentation and collapsed all into the Investors & Exporters window (Now, Nigerian Autonomous Foreign Exchange); and re-introduced the Willing Buyer, Willing Seller framework, among other reforms.
In January 2024, the CBN directed the International Money Transfer Operators to quote an exchange rate for naira payout to beneficiaries based on the prevailing market price.
The banking and finance sector regulator, in February 2024, discontinued any form of cap on the spread on interbank Forex transactions and restrictions on the sales of interbank proceeds. In the same month, the CBN limited the payout of Personal Travel Allowance and Business Travel Allowance to electronic channels only.
In March 2024, the volatility of the naira was reduced following several reforms by the CBN to improve transparency and inflows into the FX market.