By Milcah Tanimu

The Nigerian naira has gained significant ground against the US dollar, resulting in substantial losses for foreign exchange (forex) speculators. The naira saw an increase of N55 per dollar, reaching an exchange rate below N890 per dollar.

The appreciation of the naira was observed in the Peer-to-Peer (P2P) market, where it breached the N900 mark on Binance in the early hours of Tuesday. The USDT/NGN chart displayed a consistent decline from N945 to N890 against the dollar, prompting speculators to reconsider their positions.

Forex analysts attribute this recent positive movement in the naira’s value to a meeting between the Nigerian President and the Governor of the Central Bank of Nigeria (CBN) on Monday. It is believed that this meeting may have led to potential plans by the CBN to address the currency crisis and stabilize the exchange rate in the upcoming weeks.

The Acting CBN Governor, Folashodun Shonubi, suggested during a press conference that significant decisions would be taken to counter the naira’s decline. This announcement reportedly resulted in substantial losses for forex speculators. The naira’s value also rose in the physical black market, reaching around N910 per dollar, a rise of more than 40 naira within a week.

This development comes amidst broader fluctuations in the cryptocurrency landscape. Binance, a prominent player in the crypto space, recently announced the discontinuation of its fiat-to-crypto payments platform, Binance Connect, which has contributed to fluctuations in the crypto market.

As the naira’s value continues to shift, market participants remain attentive to developments and potential interventions by the CBN to stabilize the currency and restore market confidence.