The Nigerian Naira has rebounded, gaining N1.65 against the US dollar at the official market, closing at N1,454.41 on Friday. This represents a 0.11% gain compared to Thursday’s rate of N1,456.06.
The local currency had experienced minimal losses throughout the week, trading at N1,455.38 on Wednesday and N1,451.86 and N1,454.38 on Monday and Tuesday, respectively.
The Naira’s recent strength is attributed to several factors, including the Central Bank of Nigeria’s (CBN) intervention efforts and liquidity management strategies aimed at fostering stability for importers and formal businesses.
Additionally, the approach of the festive season has led to a surge in foreign currency inflows via diaspora remittances, contributing to the supply, particularly in the parallel market.
Experts predict that the Naira will continue to strengthen, driven by foreign inflows and the CBN’s policies.
The introduction of the Enhanced Foreign Exchange Market System (EFEMS) has also driven transparency and efficiency in Nigeria’s forex market, reducing speculative behavior and bolstering confidence in the Naira.
