The cost of one dollar, which peaked at N1,310 last week has nosedived, resulting in naira appreciation at the parallel market, also known as black market.
Naira on Thursday gained 2.56 percent as the dollar traded for N1,140 as against N1,170 on Wednesday on the black market segment of the foreign exchange (FX) market.
Traders attributed the naira appreciation to some government-announced policies, which has put speculators into an uncertain state.
Nigeria’s government plans to digitalise FX transactions and discourage speculative demands and hoarding of FX in cash.
Also, the Central Bank of Nigeria (CBN) has cleared about 75 percent to 80 percent of unsettled matured FX forward contracts in banks.
The pressure on the foreign exchange market eased on Tuesday and Wednesday as naira appreciated against the dollar at the official market.
After trading on Wednesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), naira strengthened further by 3.59 percent and 17.96 percent on Tuesday.
The dollar was quoted at N786.02 on Wednesday, stronger than N815.32, on Tuesday which also was stronger than N993.82 quoted on Monday, according to the data obtained from the FMDQ.