Nigeria’s national currency –Naira- traded at N1,349.5/$1 on Tuesday, representing its highest exchange rate value since May 29, 2024.
Available data from the Nigerian Foreign Exchange (FX) Market (NFEM) indicated that the local currency traded at N1,354.9/$1 on Monday.
The latest appreciation of the Naira in the official FX market was not unconnected to the rise in the nation’s external reserves and expectations on the Central Bank of Nigeria’s (CBN’s) upcoming Monetary Policy Committee meeting’s decisions.
However, the Naira did not sustain its strength at the parallel market on Tuesday as its exchange rate remained weaker at N1,443.68/$1 compared to N1,443.40/$1 the previous day, highlighting the persistent pressure in the unofficial segment of the FX market.
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The development underscores the ongoing efforts by the monetary authorities to stabilize the exchange rate of the local currency and close the gap between official and the parallel markets’ rates.
Recently, the improving liquidity in the official window aided by rising external reserves due to higher oil export earnings has helped ease volatility in the FX markets
The positive FX market rates alignment is also linked to improving remittance inflows and portfolio investments in the economy.
