Nigerian Naira Appreciates Against Dollar in Official Market

The Nigerian Naira has seen a slight increase in value against the Dollar in the official market on Friday, trading at N1,431.49, a 1.5% rise from the previous day’s rate.

This development comes as a result of increased intervention in the foreign exchange market, according to data from FMDQ.

Despite the positive movement in the Naira’s value, the total turnover in the market decreased to $199.71 million on Friday, compared to $288.47 million recorded on Thursday.

The currency traded between N1,468 and N1,301 against the dollar at the Investor’s and Exporters (I&E) window.

Researchers at Cordros Securities have attributed this appreciation to the increased confidence and renewed interest from foreign portfolio investors in the fixed-income market, which has facilitated inflows into the forex market.

The rise in the value of the Naira is also linked to the stop rates on the long-end bills, which have increased above 20.0 per cent.

This has also played a role in attracting foreign portfolio investors to the fixed-income market.

In a recent development, the Central Bank of Nigeria announced the completion of the clearance of the valid foreign exchange backlog.

This is a significant milestone in the efforts to stabilize the foreign exchange market in Nigeria.

As the Nigerian Naira continues to appreciate against the Dollar in the official market, it is expected that this trend will positively impact the overall economy and boost investor confidence in the country.