After ranking as the second worst currency in February 2024, the naira has surged to become one of the top-performing currencies in recent weeks, all thanks to its bullishness despite the dollar's recent aggressive climb. Early in the day, the Naira opened at some areas of the parallel market below N1000 to a dollar. Experts claim that through several FX reforms and interventions, the Central Bank of Nigeria (CBN) has liberated dollar liquidity and is the primary cause of the Naira's bullishness.
Furthermore, it is anticipated that in the upcoming months, this will probably result in the naira trading for less than N1000/$.
The turmoil in the Middle East, which has caused the price of oil to surge, is another factor that has helped strengthen the naira. The price of crude oil has surged above $90, and Nigerian grades are selling for more than the ICE Brent benchmark, although production has decreased, and this has had a detrimental effect on fiscal performance.
Additionally, Wale Edun, the minister of finance, revealed that the market is expecting a rise in US dollar inflows from the sale of foreign currency bonds in the second quarter.
