The Nigerian naira rebounded on Wednesday, recovering from three consecutive days of losses to close at N1,645.40 per dollar in the official market, reflecting a 2.63 percent gain from the previous trading day.

Data from the FMDQ Exchange, which operates Nigeria’s official trading platform, shows that the naira’s value surged by N44.48 compared to Tuesday’s rate of N1,689.88 per dollar. Wednesday’s rally marks a critical recovery for the naira amidst ongoing economic pressures and foreign exchange challenges facing Nigeria.

Trading activity also saw a significant boost, with the daily turnover in the foreign exchange market rising to $236.84 million on Wednesday, more than double the $106.44 million recorded the day prior.

In the Investor’s and Exporter’s (I&E) window, where market forces determine the naira’s exchange rate, the currency fluctuated between N1,698.50 and N1,609.00 per dollar, indicating active participation and some volatility in the market.

This appreciation is a positive development for Nigeria’s foreign exchange market, signaling improved investor confidence and possibly reduced demand pressures on the currency. However, analysts suggest that sustaining this trend will require policy stability and enhanced foreign exchange supply.