The Nigerian naira experienced a substantial appreciation against the dollar, reaching a new monthly high of N780.14/$1 at the official market on November 10, 2023. This marked a remarkable gain of 27.77% compared to the previous day’s closing rate of N996.75/$1. The latest figure surpassed the previous all-time high of N776.14 recorded on November 3rd.
At the parallel forex market, where currencies are sold unofficially, the naira weakened by 3.54%, quoted at N1130/$1, while peer-to-peer traders quoted around N1100/$1. The intraday high and low were recorded at N1096.17/$1 and N700.00/$1, respectively, representing a wide spread of N396.17/$1.
The Central Bank of Nigeria (CBN) recently announced the commencement of clearing the backlog of foreign exchange forward contracts, aiming to bring relief to the naira, the business community, and the overall economy. This move is part of the efforts to address chronic dollar shortages and enhance liquidity in the foreign exchange market.
The clearing of the backlog is expected to provide relief to local lenders, manufacturers, and various sectors that have struggled due to the scarcity of dollars. The CBN’s actions are seen as a positive signal, restoring confidence in the traditional market and attracting potential investments.
While the naira’s gain at the official market is noteworthy, it’s essential to note that these fluctuations can be influenced by various factors, and the market dynamics may continue to evolve.
