Naira appreciates to N1,531/$ at official market
The Nigerian naira recorded a slight gain against the US dollar on Friday, closing stronger in both the official and parallel foreign exchange markets.
In the parallel market, the naira appreciated to N1,545/$ from N1,552/$ traded on Thursday. At the official Nigerian Foreign Exchange Market (NFEM), Central Bank of Nigeria (CBN) data showed that the local currency closed at N1,531/$, compared to N1,533/$ on the previous day, representing a 0.14% appreciation by the end of the month.
Analysts attributed the gains to improved foreign exchange inflows, including higher diaspora remittances and increased participation from foreign portfolio investors (FPIs).
Nigeria’s external reserves rose by $1.72 billion to $41.3 billion during the month, enhancing the CBN’s capacity to stabilise the naira.
CBN Governor, Yemi Cardoso, disclosed that diaspora remittances surged by 200 per cent to $600 million in the last two months, significantly strengthening Nigeria’s foreign exchange profile.
Offshore investor inflows also improved, rising from $1.5 billion in June to $1.7 billion in July, reflecting cautious optimism from foreign investors encouraged by stable macroeconomic conditions and favourable carry trade opportunities.
Cardoso explained that improved remittance channels and better exchange rate stability have made it unnecessary for Nigerians abroad to rely on informal transfer methods. He added that the rising inflows were diversifying Nigeria’s foreign exchange sources and reducing overreliance on oil revenues.
