The Nigerian naira experienced a significant appreciation of 27.16%, closing at N864.29/$ on the official Investors and Exporter window on Monday.

The daily turnover of the dollar also saw a substantial increase, surging by 86.83% to $132.46 million compared to $70.90 million the previous Friday.

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The naira’s rise represents a gain of N234.76 from its recent all-time low of N1099.05/$ at the close of trading last Friday, as reported by data from the FMDQ Securities Exchange.

Trading on Monday opened at N867/$, reaching a high of N1185.10/$ and a low of N720/$ before settling at N864.29/$, coinciding with the daily dollar turnover of $132.46 million.

This rate signals a slight recovery for the national currency, which has experienced volatility following the removal of the rate cap by the Central Bank of Nigeria.

Since the central bank’s move to unify rates, the country’s foreign exchange reserves have seen a decline of approximately $1.6 billion, reaching $32.97 billion.

This decrease in FX reserves has been attributed to the naira’s depreciation.

The Economist Intelligence Unit recently stated that Nigeria lacks sufficient FX resources to defend its exchange rate unification policy.

In its Africa Outlook report, it emphasized the pressure on the naira due to an unsupportive monetary policy, leading to periodic devaluations and an unstable exchange rate regime.

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The CBN Governor, Olayemi Cardoso, acknowledged the challenges and discussed plans to release new FX guidelines to stabilize the market, involving clear, transparent, and harmonized rules for market operations.

The central bank aims to conduct extensive consultations with banks and FX market operators before implementing any new requirements.