The supply of the U.S. Dollar and other foreign currencies surged by 117 percent at Nigeria’s foreign exchange (FX) market on Friday, boosting liquidity and strengthening the Naira. Data from FMDQ revealed that foreign exchange transaction turnover increased significantly to $190.57 million, up from $87.51 million recorded on Thursday. This marked an impressive $103 million rise in FX market liquidity within just 24 hours.
The increased dollar supply comes as a positive development for Nigeria’s struggling currency, which saw gains in both the official and parallel markets. On Friday, the Naira traded at N1,541.52 at the official market and N1,663 at the parallel market, signaling an improved position compared to previous trading sessions. The currency’s performance at the close of the week brought some relief to the market, which has been grappling with volatility in recent times.
Analysts attribute the rise in FX supply to various factors, including improved liquidity from exporters and foreign investors, as well as the Central Bank of Nigeria’s (CBN) continued interventions in the market. This surge in dollar availability has helped ease some of the pressure on the Naira, leading to a more favorable exchange rate environment.
The Naira’s recovery, albeit slight, is being watched closely by market participants, especially as the country continues to navigate the economic impact of various fiscal and monetary policies. While challenges remain, such as inflation and foreign currency shortages, the increased liquidity is seen as a positive step toward stabilizing the foreign exchange market.
As the week ended on a good note, both businesses and individuals hope that the trend will continue, leading to more stability in the Naira’s value and a reduction in the gap between official and parallel market rates.
I think the Nairas strength is just temporary. We should focus on long-term solutions for a stable economy.
I believe the Nairas strength is temporary. We need to focus on long-term solutions for a stable economy.
Why should we care about the Naira strengthening when we could be discussing the latest trends in pineapple pizza toppings? Priorities, people! 🍍🍕
I dont buy it! The Naira strengthening with more dollars flooding in? Seems fishy to me. Something doesnt add up.
I dont buy it! The Naira may be strengthening, but what about the long-term impact on our economy? Lets not celebrate too soon.
Dont rain on the parade! Positive news is worth acknowledging. Lets stay optimistic.
I dont buy it. The Nairas strength is temporary. Were heading for trouble if we keep relying on volatile forex markets.
I dont buy it! The Naira might be stronger, but is it really benefiting the average Nigerian? Lets dig deeper.
Its all smoke and mirrors. The average Nigerian is still struggling. Dont be fooled.
Im not convinced that a stronger Naira is necessarily a good thing. What about the impact on exports and local industries?
Im not convinced that a stronger Naira is a good thing. What about the impact on exports and local businesses?
I dont buy it! Naira getting stronger with more dollars? Seems fishy to me. Somethings not adding up here.
I dont buy it. Nairas strength feels like a temporary high. Lets see how long this lasts. 🤔💸 #ForexMarketDrama
Dont be a pessimist, enjoy the ride while it lasts! Money moves, embrace it. 💰📈 #StayPositive
This article is missing the point! We need to focus on supporting local businesses, not just currency fluctuations.
I dont buy it! Naira strength tied to Forex supply increase? Seems fishy to me. Whats really going on here?
I dont buy it! The Naira may be strengthening, but is it sustainable? I have my doubts. Lets see how this plays out.
Time will tell. Keeping a close eye on it. Curious to see the outcome.