Naira regained ground to appreciate massively against the dollar on Thursday, 7th December 2023 at the official market after it plunged to a new low the previous day.
The domestic currency appreciated 12.83% to close at N843.07 to a dollar at the close of business, data from the NAFEM where forex is officially traded, showed.
However, the naira dropped marginally at the parallel forex market where forex is sold unofficially, the exchange rate depreciated by 0.68%, quoted at N1173/$1, while peer-to-peer traders quoted around N1182.48/$1.
The Central Bank of Nigeria (CBN) has said it has made tranche payments to 31 banks to clear the backlog of foreign exchange forward obligations.
The apex bank also disclosed that it has set up foreign exchange frameworks to address the FX issues.
The former President and Chairman governing council of, the Chartered Institute of Stockbrokers (CIS) and the Managing Director, of Arthur Steven Asset Management Limited, Mr. Olatunde Amolegbe in an exclusive chat with Naijaonpoint said for the exchange rate to be stable, market and participants confidence is key.
Managing Director/CEO, of Financial Derivatives Company Limited, Bismarck Rewane had said in a report that the naira is expected to remain volatile on lingering forex supply concerns.
The dollar dearth means speculative buying is likely to continue, with an increasing number of market participants taking long positions on the dollar while shorting the naira.