The exchange rate between the naira and the dollar has strengthened for the third consecutive day, reaching a new high of N1,534.9/$1 on the official market. This achievement represents the strongest level the naira has attained in the past seven days, signaling a positive trend in the currency market.

The official NAFEX rate, serving as the benchmark rate used by the CBN, was quoted at N1,567.65 on March 1st, 2024. Throughout the trading day, the exchange rate fluctuated between an intra-day high of N1,600/$1 and an intra-day low of N1,425/$1.

The sustained improvement in the official exchange rate since February 28th suggests a gradual return to stability in the currency market. Analysts attribute this positive momentum to various factors, including the Central Bank of Nigeria’s (CBN) intensified efforts to combat inflation.

Recent measures by the CBN, such as raising the benchmark monetary policy rate to 22.75%, selling over N3 trillion in Treasury Bills and OMO bills combined, and implementing new guidelines for the operation of Bureau de Change (BDC) operators, have contributed to restoring confidence in the naira.

Despite these positive developments, the exchange rate on the parallel market remains around N1,600/$1, according to reports from parallel market operators. However, this still marks a significant improvement from the record low of N1,880 recorded on February 22nd.

The surge in demand at the beginning of the week, with more Nigerians looking to buy than sell, reflects growing optimism among investors and consumers alike. As the currency market continues to show signs of stability and resilience, stakeholders remain cautiously optimistic about the future trajectory of the naira