Amidst fluctuations in Nigeria's foreign exchange market, the Naira has displayed a remarkable recovery against the US dollar, appreciating to N1280/$1 in the parallel market. This surge, representing an 8.57% gain from the previous day's N1,400, has left currency traders cautiously optimistic. However, uncertainties loom as traders report selling rates between N1,300 and N1,320, underscoring the market's volatility.
The recent depreciation of the Naira has been attributed to supply-demand imbalances, despite efforts by the Central Bank of Nigeria (CBN) to stabilize the currency. Despite the CBN's interventions, including selling $15.83 million to Bureau De Change (BDC) operators, the Naira's decline persists, reflecting a 2.24% depreciation at the official foreign exchange window.
Moreover, the Economic and Financial Crimes Commission (EFCC) has disclosed freezing over 300 accounts linked to illicit forex trading, highlighting ongoing efforts to curb activities exacerbating the Naira's instability.
The CBN's recent measures, including revising the foreign exchange rate for dollar distributions to BDCs, aim to enhance liquidity and support the Naira's recovery, which has seen improvement from early March levels.
