The Nigerian Naira saw a slight uptick in value against the US dollar, trading at N1,431.49 on Friday, marking a 1.5% increase from the previous day. Data from FMDQ revealed this positive trend, although the total turnover decreased to $199.71 million on Friday, down from $288.47 million on Thursday.
In the Investor’s and Exporters, I&E, window, the Naira fluctuated between N1,468 and N1,301 against the dollar. Analysts at Cordros Securities noted that increased intervention in the foreign exchange market has boosted confidence and attracted Foreign Portfolio Investors, FPIs, leading to a surge in inflows into the forex market. This has reignited interest from foreign portfolio investors in the fixed-income market, with stop rates on long-end bills surpassing 20.0 per cent.
The Central Bank of Nigeria, CBN, recently announced the successful clearance of the valid foreign exchange backlog, signaling a positive development in the forex market. This move has further strengthened investor confidence and contributed to the Naira’s recent appreciation.
