Naira Surges, Gains N340 Against USD in Four-Week Rally

An analysis of the foreign exchange trading activity over the past four weeks reveals that the naira experienced an increase of N234.01 and N340 against the US dollar in both the official and parallel foreign exchange markets, respectively.

According to data from FMDQ, the naira was valued at 1,431.49 per USD on Friday, March 22, marking a significant improvement from the rate of N1,665.50 recorded on February 23, 2024, indicating a gain of N234.01 within the specified timeframe.

In addition, the Naira also saw a gain of N340 against the US Dollar in the parallel market, with the exchange rate standing at N1,460 per USD on Friday, March 22, compared to N1,800 a month earlier. 

During this period, the Central Bank of Nigeria implemented various measures to support the Naira, such as discontinuing cash payments for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), introducing new guidelines for Bureau De Change operators, and issuing a notice regarding the revision of the FMDQ FX Market Rate Pricing Methodology.

Furthermore, President Bola Ahmed Tinubu urged Nigerians to support locally made products as a means to strengthen the Naira against the US dollar, emphasizing the importance of promoting domestic goods for economic growth.