Naira Makes Marginal Gain Against US Dollar as EFCC Arrests Currency Racketeers

In a slight relief for the Nigerian economy, the naira saw a marginal appreciation against the US dollar in the foreign exchange market on Tuesday. Data from FMDQ revealed that the naira strengthened to N1,551.24 per US dollar, marking a 1.5% gain compared to the previous day’s trading.

The recent currency movement comes amidst a backdrop of heightened volatility in the forex market. Last week, the naira experienced a slight appreciation, but fluctuations have been the norm in recent times.

However, the parallel market witnessed a drop in the value of the naira to N1,740 per US dollar on Tuesday. This fluctuation has been a cause for concern as it affects the purchasing power of businesses and individuals.

Notably, the Economic and Financial Crimes Commission (EFCC) made significant arrests in the currency racketeering space. Six individuals were apprehended in Lagos for their alleged involvement in selling new naira notes for commercial purposes, further highlighting the illegal activities impacting the currency market.

Over the past weeks, the Central Bank of Nigeria (CBN) has rolled out various measures to stabilize the naira. Policies like the Purchase of Travel Allowance (PTA) and Business Travel Allowance (BTA) have been introduced to regulate foreign exchange transactions.

Furthermore, the CBN restricted IOCs from repatriating 100% of their forex revenue, aiming to curb speculative activities that contribute to the fluctuating value of the naira.