Naira gained massively against the dollar on Thursday, 7th December 2023 at the official market after it plunged to a new low the previous day.
The domestic currency appreciated 12.83% to close at N843.07 to a dollar at the close of business, data from the NAFEM where forex is officially traded, showed.
This represents an N108.15 gain or a 12.83% increase in the local currency compared to the N951.22 it closed on Wednesday.
The intraday high recorded was N1176/$1, while the intraday low was N700/$1, representing a wide spread of N476/$1.
According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $137.35 million, representing a 1.31% increase compared to the previous day.
See Exchange Rate Tonight As Naira Rises By 12.83% At Official Market
However, the naira dropped marginally at the parallel forex market where forex is sold unofficially, the exchange rate depreciated by 0.68%, quoted at N1173/$1, while peer-to-peer traders quoted around N1182.48/$1.
The Central Bank of Nigeria (CBN) has said it has made tranche payments to 31 banks to clear the backlog of foreign exchange forward obligations.
The apex bank also disclosed that it has set up foreign exchange frameworks to address the FX issues.
The dollar dearth means speculative buying is likely to continue, with an increasing number of market participants taking long positions on the dollar while shorting the naira.
BY IYABO AINA
Publisher Of News Rain Nigeria