Nigerian Naira shocks markets with dramatic rebound against the US Dollar

In a remarkable twist, the Naira has experienced a significant surge against the US dollar, causing ripples across various markets.

It's a surprising comeback story, especially on P2P platforms like Binance, where the Naira dropped below the N900 to $1 threshold, a milestone unseen since August 2023.

From trading at N1,120, the local currency has surged by N170, marking a 15.18% increase in value. This surge is partly due to the Central Bank of Nigeria's decision to tackle its foreign exchange backlog, fueling the Naira's second consecutive day of strengthening.

Impressively, data from Binance Crypto showed a conversion rate of N855 to $1 by 6:30 p.m. on Friday, showcasing the Naira's impressive recovery trajectory.

Meanwhile, the black market's $1 cash transaction rates fluctuate between N1,000 to N1,100, serving as an informal gauge of the currency's strength. Speculators' rush to exit their short positions highlights their anticipation of further Naira appreciation.

Earlier in the week, Business Insider Africa reported the Naira hitting its all-time low against the US dollar on NAFEM, witnessing a staggering 20.5% devaluation, a historic low for the Naira versus the dollar.

This significant drop surpassed the previous record of N848/$1 on October 17, 2023, which then represented an 8.17% devaluation in just one day.