Legit Ng
Financial analysts have provided deeper insights into why the Nigerian currency has recently recovered massively against US dollars, closing below N700 per dollar last week. The Naira’s appreciation of more than 20% has been met with rapturous applause from Nigerians, who were concerned after it was named the world’s worst-performing currency.
The naira fell significantly against the dollar due to the CBN redesign move, reaching as high as N900 to the dollar on the black market as many politicians and influential Nigerians exchange Naira for dollars.
As fate would have it, the EFCC raid occurred during a period when the dollar was having a bad week.
According to BusinessDay, the Nigerian currency, which was on the verge of exchanging at N1000 to a dollar, closed 7 to 11 November 2022, trading week 26.24% stronger than it started at the parallel market. On Friday, November 11, Naira was quoted at N705 on Friday at the black market, compared to N890 a week earlier. Some traders in Ikotun, Airport roads, in fact, exchange Naira as low as N680 to a dollar.
Naira’s swift appreciation occurred just within three to four days on the back of losing 36.52 per cent of its value from January to November 2022.
