The naira has rebounded by 20.8 percent to 720/dollar at the parallel market. The naira/USD rate has been high in the past weeks before this rebound.

The development came two weeks after the local currency came under severe pressure at the black market, following the announcement by the Federal Government to redesign the naira.

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 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/dollars and 860/dollars. The national currency gained significantly and steadily on Tuesday and Wednesday and closed at 720/dollar on Thursday.

Source- PunchNG