The naira experienced a slight appreciation at the official market, trading at ₦1,431.49 to a dollar on Friday, March 22, 2024.
Data from the official trading platform of the FMDQ revealed that the naira strengthened by ₦21.79 or 1.5 per cent, compared to the previous day’s rate of ₦1,453.28 against the dollar.
However, the total turnover decreased to $199.71 million on Friday, down from $288.47 million recorded on Thursday.
Meanwhile, at the Investor’s and Exporters (I&E) window, the naira traded between ₦1,468 and ₦1,301 against the dollar.
The News Agency of Nigeria (NAN) recalls that the Central Bank of Nigeria (CBN) had earlier announced the completion of clearance of the valid foreign exchange backlog, signalling a positive development in the forex market.
On the impact of forex intervention, researchers at Cordros Securities said, “The recent overhaul and increased intervention in the FX market have bolstered confidence and facilitated Foreign Portfolio Investors (FPIs) inflows into the forex market.”
They also highlighted renewed interest from foreign portfolio investors in the fixed-income market, as stop rates on the long-end bills rose above 20.0 per cent.