Naira Strengthens as Foreign Reserves Near $52 Billion, FX Activity Surging
The Nigerian naira appreciated against the US dollar (USD) at the Central Bank of Nigeria (CBN) official exchange window on Thursday, driven by rising foreign reserves nearing $52 billion. The currency gained strength against the greenback and other Western currencies amid improved liquidity in the foreign exchange market.
Sustained inflows of foreign capital from hydrocarbon revenues, remittances, and foreign portfolio investments have fueled a consistent upward trend in Ghana’s gross external reserves. Market confidence remains robust, with brokers on Broad Street discussing the possibility of further naira appreciation.
MarketForces Africa reported that the Apex Bank opted for a measured approach to naira appreciation, effectively managing dollar inflows through the official window in the first half of the year to limit excessive gains. On Thursday, the naira appreciated by 0.05% to close at ₦1,381.53 per dollar at the Nigerian Foreign Exchange Market (NFEM), while showing a 0.36% increase against the USD in the parallel market to settle at ₦1,379.
Official data from Nigeria’s foreign exchange market indicates that the spot exchange rate fluctuated between ₦1,380 and ₦1,383.5000 during Thursday’s trading session, coinciding with a notable increase in interbank foreign exchange turnover and transaction volume.
Interbank foreign exchange activities at the NFEM window reached $205.366 million on Thursday, representing a 69% increase from the previous day’s $121.727 million. The volume of foreign exchange transactions in the interbank market also rose, reaching 120 deals, compared to the prior day’s 150 deals.
Naira Strengthens as Foreign Reserves Near $52 Billion, FX Activity Surging