Following the announcement by the Central Bank of Nigeria of a number of steps aimed at enabling the naira to trade more freely against the USD, the dollar trading on Nigeria’s foreign exchange market more than doubled.
Based on data provided by the FMDQ OTC Ltd exchange, the nation’s foreign currency market saw a total of $440 million moved on Friday, marking the highest amount since second quarter of the year 2022.
In contrast, $157 million was received on Thursday.
Last week, the Central Bank of Nigeria permitted a modification to the way it sets rate in the official foreign exchange market, clamped down on dealers who reported prices that were misleading, and discouraged lenders from speculating against the naira.
As a result, the naira fell 38% against USD.
Additionally, the Central Bank instructed banks to sell down their surplus USD reserves and loosened regulations on foreign exchange, allowing them to sell inflows at market rates.
The dollar is at N1,510.
