Despite Naira’s upward trajectory, USD supply dips by 30.7%

In Friday’s foreign exchange market, the supply of United States Dollar experienced a notable decrease, declining by 30.7% to close at $199.71 million. Data from FMDQ revealed a decrease of $88.76 million in USD transactions turnover compared to the previous day’s $288.47 million.

Despite this decrease in FX supply, the Naira demonstrated resilience, recording a slight gain to close at N1,431.49 per USD at the official market, as opposed to the previous day’s N1,453.28. Similarly, at the parallel market, the Naira traded at N1,460 per USD on Friday, compared to N1,470 on Thursday.

The Naira has been on a consistent appreciation trend against the USD for several weeks now. According to Bismark Rewane, Managing Director/Chief Executive Officer of Financial Derivatives Company Limited, the Naira has appreciated by at least 28% over three weeks. Rewane emphasized that this appreciation is sustainable if the government maintains prudent fiscal and monetary policies.