Forex Crisis: Naira Appreciation Continues As USD Supply Surges At Forex Market

In the foreign currency market, as USD transactions increased, the Naira kept rising against the US Dollar.

According to FMDQ data, the Naira strengthened from 1,602.75 per USD on Friday to N1,572.82 per USD when trading resumed on Monday.

Similarly, the country's currency passed the N1,572.82 per USD barrier, marking the first time since March 5, 2024, from an average of N1,600 per USD.

This is due to a 2.20 percent increase in USD transactions, which came to $140.45 million as opposed to $137.43 million on Friday.

The naira gained 0.78 percent versus the US dollar on the parallel market as well, trading at N1,608 as opposed to N1,614 per USD earlier.

The Naira appreciated vs the British pound, trading at N2,030 per £1 on Monday as opposed to N2,045 per £1 earlier. Additionally, it gained 0.50 percent versus the Euro, trading at N1,725 to €1, up from N1,735 on Friday of the previous week.

This occurs as Nigeria's foreign reserves, which were $34.416 billion as of March 14, 2024—a 0.008% gain from $34.413 billion the day before—saw a minor increase of $2.71 million.