The naira was on the upward trajectory as appreciated to 374 per United States, US, dollar Thursday as against 382 to the dollar the previous day.
There are expectations that the naira will stabilise going forward due to increased dollar supply to both the official interbank window and the black market.
The Central Bank of Nigeria, CBN, has been intervening in the official market to narrow the spread between the official interbank and black markets. It has sold over $4 billion since February, improving dollar supply and providing support for the naira.
So far, the CBN has injected $100 million, $205 million and $457.3 million respectively into various segments of the forex market in the past three weeks.
The feeling in many circles is that the CBN interventions, as well as the establishment of the Investors & Exporters FX Window, helped to narrow the gap between the official and parallel market rates of the naira.
However, experts insist that a convergence of the various exchange rates by the CBN should be the altimate objective.