The Nigerian naira showcased a recovery trend against the US Dollar in the parallel market, driven by actions initiated during the Central Bank of Nigeria’s (CBN) inaugural Monetary Policy Committee (MPC) meeting under the leadership of Yemi Cardoso.
At the parallel forex market, where currencies are traded unofficially, the naira appreciated to ₦1,650 against the dollar, marking a notable 6.06 per cent increase from its previous closing rate of ₦1,750.
Despite this positive movement, concerns persist as the local currency remains close to its all-time low against the dollar, exacerbated by January’s inflation rate surging to 29.9 per cent year-over-year.
Analysts anticipate significant policy adjustments and the implementation of systemic tightening measures in response.
Last week witnessed a considerable depreciation of the naira, reaching a low of ₦1,880 against the dollar on Thursday.
This widening gap between unofficial and official exchange rates poses challenges to the government’s objective of rate unification.
