Naira Surges: First 2024 gain against US dollar sparks optimism

In a notable shift, the Naira marked its initial gain of the year against the US dollar on Thursday, according to data from FMDQ. The Nigerian currency appreciated, reaching N895.23 per US dollar, a significant improvement from the previous day’s N1,035.12 per US dollar on Wednesday. This positive movement represented a notable 13.51% increase in value compared to the preceding day.

However, at the parallel market, the Naira experienced a marginal decline, settling at N1,230/$1. This represented a 0.81% decrease from the N1,220 per dollar reported on Wednesday.

The forex market recorded a turnover of $68.49 million at the close of trading, reflecting a 20.06% decrease compared to the previous day.

It’s worth noting that the Nigerian federal government recently secured a $2.25 billion foreign exchange support loan from the African Import-Export Bank, a development that occurred just a week ago. Financial experts in the sector had predicted that such a substantial forex injection from Afrexim would contribute to stabilizing the foreign exchange market. The positive impact of this loan on the Naira’s performance aligns with these expectations, providing a glimpse of optimism for the nation’s currency stability in the coming days.