Naira Gains Momentum, Reaches N461.50 Exchange Rate Against Dollar
The Nigerian currency, the Naira, has gained slightly against the US Dollar in the past few days. The Naira has been trading at N461.50 to the Dollar at the official foreign exchange market and this is a slight increase from the N465.00 to the Dollar earlier reported.
The Central Bank of Nigeria is said to have been intervening in the market by offering more US Dollars, which has caused the value of the Naira to appreciate. This is a welcome breath of fresh air for the Nigerian economy which has been struggling to keep up with the increasing demand for US Dollars due to lower oil prices and the economic recession.
The Naira appreciated by 0.84% to N461.50 per Dollar compared to N465 to the Dollar, according to the CBN's website. The slight gain is being attributed to the CBN's intervention in the market, as it has been supplying dollars to boost liquidity and allow the Naira to appreciate.
The Naira has been under pressure in the past few months due to a shortage of US Dollars, leading to a depreciation of the currency. This has had a negative effect on the Nigerian economy with rising inflation and a drop in consumer spending.
However, the CBN is taking steps to mitigate the situation by supplying additional US Dollar liquidity in the market. It is hoped that this will help the Naira gain stronger footing against the Dollar and lead to increased consumer confidence, which in turn should help the Nigerian economy recover from the current economic slump.
