The Nigerian currency, the naira, has witnessed a significant surge in value against the dollar, marking a noteworthy gain in recent trading at the parallel foreign exchange (FX) market.
Trading at N1,500/$, the naira’s strength has notably risen by 9.09 percent from its previous rate of N1,650/$, indicating a positive trend for the local currency.
Bureau de Change (BDC) operators have set the buying rate at N1,450 and the selling price at N1,500, allowing for a profitable margin of N50.
Governor Olayemi Cardoso of the Central Bank of Nigeria (CBN) commented on the recent performance of the naira, attributing its undervaluation to manipulative practices within the FX market.
Addressing the issue, Cardoso affirmed the CBN’s commitment to rectifying market distortions caused by unethical behaviors. He stated, “As and when we come up with these distortions, we will take them off and throw them away, and where there are distortions that come about as a result of bad behavior, we will ensure that those who do it will face the music as a deterrent to ensure that others in the future do not take that route.”
Cardoso emphasized the necessity of regulatory measures to uphold market integrity and stability, particularly in light of actions that perpetuate confusion within the FX market.
The recent surge in the naira’s value underscores positive developments in Nigeria’s currency landscape, with the CBN actively working to address underlying issues and maintain a conducive environment for economic growth.