The Nigerian naira has appreciated to N1,506 per dollar in the official window, driven by increased liquidity in the currency market and Central Bank of Nigeria interventions.
The dollar spot rate settled at N1,506.8433 per dollar, reflecting a notable improvement from N1,514.8671 in the first week of September. Nigeria’s foreign reserves rose to $41.5 billion from $41.44 billion.
Experts predict the naira will remain relatively strong in the global currency market amid broader pressures on the US currency. “We’re noticing renewed confidence in the Nigerian economy as investors look for safe havens for investment,” said Janet Ogochukwu, senior banker and economist.
The naira exchange rate improved due to sufficient US dollar liquidity in the currency market. Total FX inflows stood at $567.2 million, with Foreign Portfolio Investment leading with $184.1 million, representing 32.5% of overall inflows. The Central Bank of Nigeria intervened in the FX market with $173 million, accounting for 30.5% of inflows.
Brent crude dipped 3.85% to $65.5 per barrel, with analysts expecting continued fluctuations due to the balance between demand signals and producer supply decisions.
In conclusion, the naira’s recent strength is expected to persist, supported by sustained FX inflows and CBN interventions. However, the impact of crude oil price volatility and global economic trends on Nigeria’s economy remains to be seen.
