Naira Gains as Pressures from Foreign Payments Ease
The naira gained momentum against the US dollar in Nigerian foreign exchange markets, signalling a welcome relief as pressures from international settlements and import payments ease.
Recent daily FX data from the Central Bank of Nigeria (CBN) shows that the official exchange rate has improved by 20 basis points, moving from N1,386.70 to N1,383.88 per dollar on Thursday.
This positive trend underscores the growing confidence in Nigeria’s currency market, with supply boosted by foreign portfolio investors, exporters, and non-bank corporates.
Intraday rates quoted on the official FX platform ranged from N1375 to N1391, marginally below the previous transaction FX data released by the Apex Bank.
The spot exchange rate fluctuation reflected the strength of the US dollar on the supply side relative to demand for foreign payments from various requisitioners.
In the parallel market, the naira has also shown resilience, appreciating to N1,405 after rising to N1,420 earlier in the day, according to channel checks. The informal sector spot rate bounce has narrowed the spread from N28.30/USD to just N21.12/USD, reflecting enhanced market stability.
CBN data indicate that Nigeria’s external reserves declined by -0.09% to $49.53 billion, dropping from its 2009 high due to successive outflows related to foreign obligations settlement. NCC Unveils New Digital Security to Curb Fraudulent Transactions