The value of the Nigerian naira increased on Wednesday, 1st November 2023, as it traded at N786.02 to a dollar at the official market, a 3.73% rise from the previous day’s rate of N815.32.
The naira also gained on the unofficial market, where it sold for N1170 per dollar, an improvement of 0.85% from the previous day.
The official market witnessed a high volatility, as the exchange rate fluctuated between N701 and N1101 during the day, a difference of N400.
The forex turnover at the end of the trading was $105.98 million, a significant drop of 41.82% from the previous day.
The naira’s appreciation was attributed to several factors, including the increased supply of dollars from the Central Bank of Nigeria (CBN), the improved oil prices in the international market, and the reduced demand for foreign currency due to the easing of COVID-19 restrictions.
However, some analysts warned that the naira’s strength may not be sustainable, as the country still faces economic challenges such as inflation, insecurity, and debt.