Naira Strengthens Against Dollar, Gains ₦125 Over the Weekend
The Nigerian Naira has shown signs of recovery, appreciating by ₦125 to close at ₦1,275 per US dollar over the weekend, marking a significant improvement from the ₦1,400 rate at the close of trading on Friday.
This appreciation, a notable 9.8 percent increase, has brought a wave of cautious optimism among traders and analysts alike.
The rebound comes amid calls from the Senate, particularly its Committee on Finance, for increased efforts to stabilize the Naira.
During a recent session, the committee highlighted the urgent need for a collaborative approach involving all relevant stakeholders to address the ongoing volatility and depreciation challenges facing the Naira.
Currency traders at the popular Wuse Zone 4 market in Abuja, while speaking to Punch on Sunday, pointed out that trading uncertainties were a primary cause for recent fluctuations in the exchange rate.
They emphasized the government’s critical role in deciding whether to further increase the currency’s value or consider devaluation to ensure market stability.
A trader at the market, Malam Yahu Ibrahim, expressed concerns about the risks associated with trading the Naira due to its instability.
He noted that these risks were becoming increasingly significant, impacting the decisions and operations of currency traders.
He said, “We take risks against ourselves every day because I don’t know how they are doing it, the naira is just swinging. “If the government wants to bring down the dollar totally, they should do it or if they want the naira to fall, they should do it and not allow it to fluctuate. It is killing businesses.
“We are not even seeing the effect of the CBN dollar sale to BDCs, we are not seeing any effect.”
Another trader, Abubakar Taura, had in an earlier interview, expressed caution in trading activity, citing ongoing concerns that the CBN might take some drastic measures to stabilise the naira.
He noted that they couldn’t guarantee or predict what the rate would be on Monday (today) due to the volatile nature of the market.
The recovery in 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, said the move would tackle volatility and boost regulatory compliance within that segment of the market.
He said, “Part of our vision for a united retail-end forex market includes activating geo-mapping and automated BDCs physical office verification exercise using the Remote Gravity Physical verification apps. This will enable forex buyers to easily locate BDCs offices for effective and seamless transactions.”
The post Naira Strengthens Against Dollar, Gains ₦125 Over the Weekend appeared first on Naija News.
