The Naira is currently trading at its strongest level in the black market, unofficial market this year following improved market fundamentals and ongoing reforms by the Central Bank of Nigeria.
The naira buying price in the black market was quoted at N1,520/$ in the early hours of Tuesday in Nigeria’s business capital.
The price action highlighted increased participation in the Nigerian stock market despite a drop in Treasury bill yields and increased incentives for naira-denominated investments.
In addition, the CBN’s FX sale to BDC operators amid a drop in FX demand provided Naira bulls with enough ammunition to breach the N1,500/$ support line.
The Nigerian currency is experiencing a rare period of stability, one year after a precipitous decline against the dollar.
The naira lost 70% of its value against the US dollar since authorities loosened foreign exchange controls in 2023.
However, the Nigerian apex bank has enacted several forex interventions and policy measures to boost the naira’s value, such as strengthening rules for Bureau De Change operators and boosting dollar liquidity in the official market.
CBN Governor, Olayemi Cardoso, declared that there would be harsh consequences for any violations of the recently introduced Nigeria Foreign Exchange (FX) Code. He reaffirmed the Central Bank’s commitment to upholding ethical behavior and transparency in Nigeria’s foreign exchange market.