The Nigerian Naira appreciated significantly against the US dollar throughout March 2024, marking a major turnaround for Nigeria’s exchange rate policy.
Official figures indicate that the Naira closed the month at N1309/$1 on the last trading day, up from N1595.11/$1 at the end of February 2024.
This 21.8% gain points to the success of several forex policies, strategies and interventions by the Central Bank of Nigeria (CBN) all aimed at stabilizing and strengthening the national currency.
In the parallel market, the Naira saw an even more pronounced recovery. The exchange rate improved from N1600/$1 in February to N1250/$1 in March, representing a 28% gain in one month highlighting the effectiveness of the measures taken to bridge the gap between the official and unofficial currency markets.
The gains in the official and parallel market are the largest seen in over 5 years. Before now, the exchange rate was fixed at about N450/$1 for almost two years and around N380/$1 between 2020 and early 2021.
