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Naira Shows Resilience: Appreciates Against Dollar in Official and Parallel Markets |
This development highlights the Naira's resilience and the efforts of stakeholders to support its recovery. As the foreign exchange market continues to evolve, it's crucial to monitor trends and developments to better understand the complexities of the market and identify opportunities for growth.
In a welcome development, the Naira displayed a marginal appreciation against the US dollar in both the official and parallel foreign exchange markets last week. According to FMDQ data, the Naira traded at N1400.40 per US dollar on Friday, up from N1402.67 the previous day, representing a 2.27% gain. Similarly, in the parallel market, the Naira strengthened by N50, trading at N1,290 per US dollar, compared to N1,340 on Thursday.
Although the Naira still faces challenges, having lost N63.44 against the US dollar on a week-on-week basis, industry experts remain optimistic about its prospects. Aminu Gwadabe, National President of Bureaux de Change Operators in Nigeria, emphasized the importance of harmonizing the retail end of forex and collaborating with the Central Bank of Nigeria to stabilize the Naira, potentially pushing it below the N1,000 per US dollar mark in the foreign exchange market.
This development highlights the Naira's resilience and the efforts of stakeholders to support its recovery. As the foreign exchange market continues to evolve, it's crucial to monitor trends and developments to better understand the complexities of the market and identify opportunities for growth.
Additionally, the appreciation of the Naira against the US dollar could have a positive impact on the economy, making imports cheaper and potentially leading to a reduction in inflation. However, it's essential to sustain this momentum and address the underlying challenges facing the Naira to ensure a stable and prosperous future for the Nigerian economy.
