At midday Friday, the Naira appreciated to N880/$1 on Binance, a cryptocurrency exchange.
The rate was N118.6 lower than the previous day’s rate of N998.6/$1.
The news appears to have sparked panic selling on the Binance P2P market.
Remember that the Naira strengthened on Thursday in both the parallel and official international markets.
According to reports, the Central Bank of Nigeria began clearing forex backlogs to commercial banks, airlines, and other businesses on Wednesday.
The currency market had received a favorable signal from the Development.
Dayyabu Mistila, a Bureau De Change operator in Abuja’s Zone 4, ascribed the Naira’s recent strength to its increased availability.
In response to the news, Mr Idakolo Gbolade, CEO of SD & D Capital Management, stated that the recent clearance of FX obligations by the CBN is to blame for the Naira’s bounce.
He believes that if the current trend continues, the Naira will strengthen and trade below N1,000/$1 in the foreign market before the end of the year.
“The rebound of the Naira against the dollar is against the backdrop of the recent clearance of FX obligations by the CBN. This has brought confidence to the system and made the Naira emerge stronger against the US dollar. If the momentum is sustained, the Naira would be trading below N1,000 against the US dollar before year-end.
“The CBN needs to continue the intervention so that the Naira can gain strength going forward and improve the economy”, he stated.