The Nigerian Naira showed signs of appreciation in the official market on Monday, trading at N1,607.15 to the US dollar, marking a notable gain.
This comes amidst hunger protests that have been gripping the country for the past week.
According to data from the FMDQ Exchange, which oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira appreciated by N9.93, representing a 0.61% gain compared to its previous rate of N1,617.08 per dollar on August 2.
The appreciation is a positive turn for the Naira, which has faced significant volatility in recent months.
The Naira’s appreciation continued into Tuesday, trading at N1,601 per dollar, showing an additional gain of N6.15 from the previous day.
This indicates a strengthening trend for the Naira in the official market, which has been a subject of keen interest for both local and international observers.
Despite the Naira’s appreciation, the total daily turnover in the foreign exchange market decreased.
On Monday, turnover fell to $77.09 million, down from $131.55 million recorded on August 2.
The drop in turnover suggests a reduction in the volume of transactions, which could be attributed to various market factors including reduced trading activity amid the ongoing protests.
The Naira also saw improvement in the black market. On Tuesday, it exchanged at N1,607 per dollar, up from N1,610 the previous day.
This alignment between the official and black markets reflects a more consistent strengthening of the Naira across different trading platforms.
The naira’s recent gains come despite ongoing hunger protests that have been affecting various parts of the country.
The protests, which began last Thursday and entered their sixth day on Tuesday, have been driven by increasing concerns over food insecurity and economic hardship.
The dual occurrence of the Naira’s appreciation and the ongoing protests presents a complex picture of Nigeria’s economic landscape.
While the Naira’s recent performance in the forex market offers a glimmer of economic stability, the underlying social issues reflected in the protests highlight the ongoing challenges faced by ordinary Nigerians.
