On Thursday, the Nigerian naira officially foreign currency market recovered some of its recent losses to reach N1,383 against the United States dollar as banking system liquidity improved.
The News Chronicle reports that statistics released by the Central Bank of Nigeria reveal the local currency gained N6 after ending at N1,389 per dollar the day before, therefore reversing its worst single-day drop since April.
While interbank foreign exchange turnover rose sharply to $195.37 million from the $125.59 million noted the day before, the naira moved between N1,376 and N1,390.50 throughout the session. Although the U.S. dollar kept strength across world markets, the rise in market activity helped to buoy the currency.
The dollar stayed strong worldwide as markets considered new US inflation statistics and predictions that the Federal Reserve might not raise interest rates in the near term. The Japanese yen, meanwhile, kept hovering near its almost four-decade weakest level versus the dollar.
Improved most recently is Nigeria’s foreign reserves, which are over $51 billion, their highest since 2009. Experts believe that in the next months the country’s improved reserve posture and continuous foreign currency changes might assist to buffer the naira against outside market pressures and support exchange rate stability.
