Naira Gains Value as Nigeria’s Foreign Reserves Reach $53.3bn
Supported by strong FX supply, the Naira on Friday sustained its weeklong appreciation, strengthening to N1,337.28 against the US dollar at the official foreign exchange market.
The local unit’s strength was supported by supportive forex market liquidity and growing foreign investors’ confidence in the local economy.
Hoping to exit at their convenience, foreign portfolio investors continue to channel hard currency into the financial markets to tap Nigeria’s elevated yields on naira-denominated assets.
Data published on the official website of the Central Bank of Nigeria (CBN) showed that the local currency gained N1.29.
The latest appreciation represented a 0.09 per cent increase from Thursday’s rate of N1,338.58 per dollar. The Naira has now recorded gains throughout the week, extending an appreciation trend that had persisted for a fortnight.
The market resumed trading on Wednesday at N1,343.59 per dollar for eligible transactions at the Nigerian foreign exchange market (NFEM).
The local unit subsequently strengthened by N5.01 on Thursday, closing at N1,338.58 per dollar. On Monday, the Naira traded at N1,346.97 per dollar before continuing its upward movement during the week.
The latest performance means the currency gained N9.69 against the dollar at the official market between Monday and Friday. The Naira’s Friday rate therefore represented a 0.72 per cent appreciation compared with Monday’s N1,346.97 per dollar.
The sustained gains highlight continued strengthening of the domestic currency at the official foreign exchange market during the week.
Updated market data showed that Nigeria’s gross external reserves climbed to $53.310 billion, from $53.297 billion following fresh inflows from an undisclosed external source.
