Supported by a weaker global dollar and improved domestic liquidity, Nigeria’s currency gained further on Thursday, ending at N1,385 to the US dollar in the official foreign exchange market.
Central Bank of Nigeria Data from the Nigerian Foreign Exchange Market showed the naira rising from earlier in the week, mirroring a stronger tone and a more consistent dollar supply.
The currency traded as high as N1,367 to the dollar during the session before dropping to finish around N1,385, an advance from N1,394 noted a day earlier.
Rising foreign exchange inflows, together with measures aimed at restoring trust in Nigeria’s currency system, led The News Chronicle to conclude that the most recent appreciation was driven.
Market activity suggests both more dollar availability inside the official window and less speculative pressure.
Global events also contributed to the US dollar’s weakness as expectations about US monetary policy shifted and risk worries faded in international markets. This general trend has strengthened the naira relative to many other developing-market currencies.
Better transparency policies, greater outside reserves, and remittances from exports have contributed to volatility calming on the home front.
Although experts are wary about long-term sustainability, recent developments indicate near-term stability is getting better, even as oil prices and ongoing FX inflows help the improvements are under the spotlight.
