HomeNewsNaira Soars Below N1,600: A Glimmer of Economic Hope

Naira Soars Below N1,600: A Glimmer of Economic Hope

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The Nigerian Naira is showing promising signs of recovery, with its value appreciating to below N1,600 per US dollar on the official market, NAFEM1. This encouraging trend is backed by data from Tuesday’s transactions, which revealed a strengthening Naira, now quoted at rates below N1,600.
On Monday, over $306 million was traded in 271 deals, with approximately 43% of these deals falling within the rate range of N1,400 to N1,450 per dollar. Only about 9% of the deals were in the N1,600 to N1,650 rate range1. This data indicates a significant shift in the foreign exchange market, with the Naira gaining strength and traders increasingly quoting rates below N1,600.
This positive trend is attributed to a rise in foreign reserves to $34.37 billion and a rare convergence in the official and black market rates of the local currency. These developments are instilling hope for a stronger Naira after a challenging period.
The convergence of the official and parallel-market exchange rates is the longest streak since the nation initiated foreign exchange market reforms1. This development, coupled with an increase in foreign reserves, is shifting attention back to Nigeria.
Despite the competition for investors’ attention with countries like Egypt, which has seen significant interest due to the inflow of dollars from the Gulf and the World Bank’s support, Nigeria is making a comeback. The strengthening Naira and the improving economic indicators are painting a hopeful picture for the future.
As we look forward to more positive economic trends, the current developments serve as a testament to Nigeria’s resilience and potential for growth. The strengthening Naira is not just a sign of economic recovery, but also a beacon of hope for a brighter and more prosperous future.


Source: BusinessDay NG

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