Continuing its recovery on Monday, the Nigerian naira rose against the U.S. dollar in both official and parallel markets, extending its consistent upward trend from the prior week.
Data from the Central Bank of Nigeria (CBN) show the naira gained N5.16 to close at N1,452.79 per dollar, reflecting a 0.35 percent appreciation from Friday’s rate of N1,457.95.
The News Chronicle gathered that Nigeria’s exit from the Financial Action Task Force (FATF) “grey list.” This mix of elements has increased investor confidence and lessened strain on the foreign exchange market.
The resilience of the naira, according to Dr. Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), was driven by renewed financial discipline and higher capital inflows.
He said that diaspora remittances and improved foreign reserves have been instrumental in bolstering the naira, adding that the currency grew by around N10 at the comparable market rate in the previous week.
On the worldwide market, meanwhile, the U.S. dollar fell on Tuesday as traders took positions ahead of important central bank meetings, notably the expected rate decision by the U.S. Federal Reserve. Analysts project the Fed to lower rates by 0.25%, which might further weaken the dollar and propel developing country currencies like the naira.
With U.S. money tracked against six international counterparts, the dollar index decreased 0.19 percent to 98.58. The decrease followed news of U.S.-China trade negotiations and rising expectations that the Fed will signal the end of its tightening cycle.
