Naira climbs significantly to N1,492 against the USD on the foreign exchange market as foreign reserves rise

The Naira saw a significant appreciation to N1,492.61 against the US dollar in the official foreign exchange market, coinciding with a surge in foreign reserves to $34.11 billion.

According to FMDQ data, the Naira experienced a gain of N67.96 compared to the previous day’s exchange rate of N1,560.57 per USD.

This marks the first time in recent weeks that the Naira has dipped below the N1,500 mark against the US dollar, reflecting positive movement in the forex market.

The increase in USD transactions turnover to $268.29 million on Wednesday from $195.13 million the day before further highlights the strengthening position of the Naira.

Additionally, the Naira’s appreciation to N1,520 per USD in the parallel market on Wednesday, compared to N1,600 on Tuesday, indicates a broader positive trend in the currency’s performance.

The recent announcement by the Central Bank of Nigeria regarding the clearance of a $7 billion forex backlog has contributed to the improved foreign reserves, which now stand at $34.11 billion as of March 7, 2024.