Emmanuel OchayiThe Nigerian currency, the naira, showed signs of recovery on Thursday, June 6, 2024, trading at N1,481 to the American dollar, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).
This marks a slight gain from the previous day’s rate of N1,488/$1.
Join our WhatsApp ChannelAt the end of trading on Wednesday, the naira appreciated by N7 against the dollar. During the trading day, the highest rate recorded was N1,505/$1, while the lowest was N1,401/$1, indicating a spread of N104.
In the parallel market, the naira also showed improvement, trading at N1,495/$1 compared to N1,500/$1 the previous day, gaining N5.
A trader at the market, Chinedu Okeke, said, “We’ve seen a slight improvement in the naira’s value today. It’s a positive sign, but we need to monitor the market closely.”
The naira’s performance wasn’t limited to the dollar. It also gained against the British Pound, trading at N1,890/£1, up from N1,900/£1, showing a gain of N10. Additionally, the naira appreciated against the Euro, trading at ₦1,570/€1 compared to the previous day’s rate of ₦1,600/€1, indicating a gain of N30.
READ ALSO: Naira Hits Lowest Level Of N1,488/$1 In 3 Weeks Amid Volatile FX Market
For several days, the Canadian dollar remained stable against the naira, trading consistently at N1,200/CA$1.
A financial analyst, Ngozi Eze, commented on the situation, saying, “The slight appreciation of the naira is encouraging. However, the currency still faces significant challenges. The spread in intra-day rates indicates volatility, and the government needs to implement policies to stabilize the currency further.”
NAFEM data reflects a market responding to various economic factors, including foreign exchange policies and global economic trends. The Nigerian government has been working on measures to strengthen the naira, but experts suggest that more needs to be done.
Ngozi Eze added, “It’s not just about short-term gains. We need long-term strategies to boost investor confidence and ensure sustainable growth for the naira.”
As the naira shows signs of recovery, many Nigerians remain cautiously optimistic. The currency’s performance against major global currencies like the dollar, pound, and euro will be crucial in determining its stability in the coming weeks.
Chinedu Okeke emphasized, “Today’s gains are a step in the right direction. We hope to see continued improvement, but it requires consistent effort from both the government and market participants.”
The Nigerian market continues to watch the naira’s performance closely, hoping for a sustained period of stability. While Thursday’s trading brought some relief, the future of the naira depends on a combination of effective policies and favorable economic conditions.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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