The naira has appreciated for the first time in three weeks after trading at N1113 to the dollar on Friday.
The naira also within a space of hours appreciated by N166 to the dollar in the P2P market, as currency traders have started re-evaluating their strategies.
The naira had actually peaked at N1279/$ on Thursday evening but settled at N1113/$ as of this writing.
Nigeria’s currency enjoyed its previous gain on October 3, 2023.
That very instance saw the naira increase by as much as N8 against the US Dollar.
After strengthening by 1.85% against the dollar Monday on the Nigerian Autonomous Foreign Exchange Market, Tuesday’s exchange rate saw an appreciable depreciation of 6.86%.
Feelers across markets suggest the gains may be due to lack of buyers as very few people are inclined to pay around N1300/$ sensing a potential strengthening of the local currency.
Meanwhile, the Renewed Hope Agenda of President Bola Ahmed Tinubu foregrounds reforming the economy for viability and sustainability, stimulating buoyancy and productivity, and devising pathways for sustainable growth and development.
The President Tinubu-led Federal Government is making requisite interventions in critical sectors of the economy.
These interventions are in conformity with the core objectives of ending poverty, achieving food security, economic growth and job creation, access to capital across all segments of society and the economy, inclusivity, security, fairness and rule of law and anti-corruption.
Tinubu has come up with the unification of foreign exchange rates, jeopardising arbitrage and the lifting of FOREX restrictions on the importation of 43 items to funnel out pressure from the parallel market and stabilise price.
There is also the expected $10 billion FOREX inflows to improve liquidity and stabilise the market, and other ongoing reforms to strengthen the naira and tackle inflation.
The minister of finance Wale Edun stated recently that Nigeria is set to receive $10 billion in foreign currency inflows over the next several weeks to help improve liquidity in the foreign exchange market, which has stifled growth in Africa’s largest economy.
Edun added that President Tinubu signed two executive orders permitting the issuance of domestic financial
financial instruments denominated in foreign currencies as well as the transfer of all cash outside the banking system into banks.
The impression among traders especially speculators is that the exchange rate could gain against the dollar in the coming days and as such no avoid losing their shirts, they have to sell lower
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