The Nigerian currency naira made a massive rebound against the dollar at the parallel market. Record show that a massive 20.8% was recorded against the dollar on Thursday.
It now exchange for 720/1 as against 910/1 that it rose to few days ago.
Recall that Naira came under severe pressure as soon as the federal government announced that it was going to redesign the currency.
The naira which fell consistently throughout last week against the United States dollar tumbled to an all-time low of 910/dollar last weekend.
However, the currency began a rebound against the greenback on Monday, after a week-long clampdown on foreign exchange dealers in Abuja, Lagos, Kano and other major cities by the personnel of the Economic and Financial Crimes Commission.
EFCC officials had arrested over 90 Bureau De Change operators across major cities in the country over allegations of currency hoarding and aiding politically exposed Nigerians and other criminal elements in money laundering.
The naira which was bought and sold on the streets of Lagos and Abuja and some other cities within the country between 735/dollar and 745/dollar about two weeks ago began a free fall shortly after the decision of the Federal Government to redesign the local currency.
On Monday, however, the naira rebounded and was bought and sold between 850/dollar and 860/dollar. The national currency gained significantly and steadily on Tuesday and Wednesday and closed at 720/dollar on Thursday.
Many financial analysts and forex dealers who dealt on the matter disclosed that the surge in the difference on both currencies was as a result of market sentiment and the activities of the EFCC personnel.
The clampdown on forex dealers was said to have forced several BDCs into hiding, a move that reportedly made many politically exposed persons and currency speculators hold back in their demand for the greenback.
There had been a huge demand for the dollar at the parallel market in Lagos, Abuja and other cities.
Some analysts have also posited that the scarcity of the Naira at a later time will give it strength against the dollar.