Naira Records Major Gain Against Dollar

The Nigerian currency, the naira, has demonstrated robust signs of appreciation at the parallel foreign exchange (FX) market.

Naira gained strength, now trading at N1,500/$, a notable surge of 9.09 percent from Monday’s rate of N1,650/$. Bureau de Change (BDC) operators, who have established the buying rate at N1,450 and the selling price at N1,500, make a profitable of N50.

Governor Olayemi Cardoso of the Central Bank of Nigeria (CBN) addressed the currency’s recent performance, indicating that the naira is fundamentally undervalued due to manipulative practices within the foreign exchange market.

“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 stated, emphasizing the CBN’s commitment to addressing market distortions caused by unethical practices.

He further highlighted that such actions by perpetrators contribute to confusion within the FX market, underscoring the need for regulatory measures to maintain market integrity and stability.