The naira strengthened to N1,357.26 per dollar on Wednesday — a near one-month high last seen on May 6 — as improved liquidity and rising external reserves continue to support Nigeria’s currency.
Data from the Central Bank of Nigeria showed the naira gained N3.79 from Tuesday’s close of N1,361.05. External reserves have climbed to $49.87 billion as of June 2, giving the CBN a comfortable buffer for further market intervention.
Gap Narrows
In the parallel market, the dollar was quoted at N1,393, narrowing the gap between the official and unofficial rates to just N18 — down from N24 a week ago. The narrowing spread signals growing confidence in the official market and reduced pressure on the naira.
Market activity on Monday and Tuesday showed total NFEM turnover at $676.43 million on Tuesday, down 14.97 per cent from Monday’s $795.55 million. The number of deals also eased to 376 from 392 over the same period.
The appreciation is closely watched by businesses and households grappling with import costs. A stronger naira reduces the price of imported goods, eases inflationary pressure, and improves purchasing power for ordinary Nigerians. The CBN’s revised Foreign Exchange Manual, released this week, is expected to sustain the positive momentum by easing restrictions on domiciliary accounts and remittances.
Sources: BusinessDay, Business Post, Legit.ng
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