Naira appreciates by 0.07% against dollar in Official Market

The Nigerian naira showed notable strength at the official foreign exchange market the previous week, closing at N1,600 per US dollar. This gain represents an improvement of N1.20 or 0.07% compared to Thursday’s exchange rate of N1,601.20 to the dollar, according to data from the FMDQ Exchange’s official platform.

The foreign exchange market also experienced increased trading activity, with daily turnover reaching $284.93 million on Friday, up from $230.99 million recorded the previous day. This rise in turnover suggests an uptick in forex transactions, potentially driven by market adjustments to stabilise the naira.

In the Importers and Exporters (I&E) window, the naira fluctuated between N1,682 and N1,589.82 per dollar, reflecting the ongoing volatility and the impacts of stabilisation efforts. This range highlights the challenges the naira faces in maintaining stability amid external economic pressures.

The naira’s improvement was mirrored in its performance against other major currencies. Data from the Central Bank of Nigeria (CBN) showed gains against the British pound and the euro. Against the pound sterling, the naira strengthened by N7.77, trading at N2,132.29 per pound compared to Thursday’s rate of N2,140. Against the euro, it gained N11.98, closing at N1,768.18 per euro from N1,780.16 on the previous day.

These gains in the naira’s value suggest positive outcomes from ongoing structural adjustments within Nigeria’s financial sector, as well as efforts by regulatory authorities to reinforce the local currency. Policymakers and stakeholders continue to observe these trends, aiming to maintain stability and support the naira amidst broader economic challenges.

Source: Legit.ng