The Nigerian naira has shown signs of strengthening against the United States dollar, appreciating by N125 to reach N1,275/$1 over the weekend. This new rate represents a 9.8 per cent increase compared to the N1,400/$1 it traded at the close of trading on Friday.
The Senate, through its Committee on Finance, has called for concerted efforts by all relevant stakeholders to rescue and sustain the stability of the naira, acknowledging the urgent need to tackle its continuous depreciation and instability.
Currency traders at the Wuse Zone 4 market attributed the fluctuations in the exchange rate to trading uncertainty. They emphasized the need for the government to either increase the currency value or devalue it for market stability.
The recovery in the naira's value coincides with plans by the Association of Bureaux De Change Operators of Nigeria to unify the retail end of the foreign currency market. ABCON President, Aminu Gwadabe, stated that this move would tackle volatility and boost regulatory compliance within the market segment.
Before this marginal gain, the naira had lost 26.2 per cent in two weeks compared to N1,125 per dollar quoted on April 12, 2023, on the parallel market. Last Monday, the Central Bank of Nigeria approved the allocation of $15.83 million to 1,583 BDC operators to enhance liquidity in the unofficial market.
Data from the FMDQ Securities Exchange showed that the naira continued its downward trend against the greenback at the official foreign exchange window, closing at N1,339/$ on Friday, representing a 2.24 per cent depreciation compared to the N1,309/$ quoted on Thursday.
The Chairman of the Senate Committee on Finance, Senator Sani Musa, expressed concern over the recent depreciation of the naira and emphasized the need for proactive measures to safeguard the currency's stability and resilience. He highlighted the committee's commitment to working collaboratively with relevant stakeholders to implement effective policies and strategies to address the root causes of naira depreciation and foster economic stability.
Senator Musa urged Nigerians to remain vigilant and resilient, emphasizing that together, they can overcome the challenges facing the economy and chart a path towards prosperity for all.
