Naira Rises to N1421/$ as Nigeria’s External Reserves Surge
In an all-week rally, the Nigerian local currency, the naira, appreciated sharply at the official window, settling at N1421/$ due to significant liquidity in the forex market.
The local currency has gained N36 per dollar at the official window in the last five trading sessions. Updated data from the Central Bank indicates that the spot rate surged by 107 basis points on Friday to N1421.73 per greenback.
The spot rate touched an intraday high of N1434.5000 in the absence of FX pressures in the currency market. The official rate tested N1415 briefly during the day before it closed at N1427.50 per dollar.
FX liquidity has remained strong week on week, and this triggered exchange rate recalibration amidst bullish predictions for 2025. The local currency rally was supported by increased inflows from exporters, non-bank corporate, individuals and foreign investors.
In the parallel market, the local currency settled at N1480 today, according to channel checks conducted in Lagos and Abuja. Some Bureaux de Change (BDCs) appear to be in short supply, causing spreads to remain heavy.
Meanwhile, gross external reserves rose to $43.172 billion, covering more than 12 months of imports following successive US dollar inflows across oil exports and remittances. In October, Nigeria’s foreign reserves expanded by $819 million from $42.353 billion at the end of September. Access Holdings Profit Falls by 2.2% as Impairment Charge Spikes
