The Nigerian Naira has recorded its highest single-day gain against the US dollar at the official foreign exchange market this week. According to data from the Central Bank of Nigeria, the Naira appreciated to 1,535.47 per dollar on Thursday, up from 1,537.07 on Wednesday. This represents a gain of 1.6 Naira per dollar, the largest margin since Monday.
The improvement in the Naira’s value comes amid a continued rise in the country’s external reserves, which hit $41.24 billion as of Wednesday. This is up from $41.22 billion on Tuesday, indicating a steady increase in the country’s foreign exchange holdings. The external reserves have been on a sustained rise, providing a boost to the Naira’s performance against major currencies.
At the official foreign exchange market, the Naira had previously recorded its first appreciation against the dollar this week on Wednesday, firming up by 0.54 Naira. However, at the parallel foreign exchange market, the Naira remained flat at 1,548 per dollar on Thursday, unchanged from the previous day’s rate.
The Naira’s gain against the dollar is a positive development for Nigeria’s economy, which has been working to stabilize its currency and increase its foreign exchange reserves. The rise in external reserves is a key factor in supporting the Naira’s value, as it provides the country with a larger buffer to meet its foreign exchange obligations.
The Central Bank of Nigeria’s efforts to manage the country’s foreign exchange market and maintain a stable currency have been ongoing. The bank’s data shows that the Naira’s value has been improving gradually, with the latest gain being the highest single-day increase this week. As the country’s external reserves continue to rise, it is likely that the Naira will remain stable, potentially leading to further gains against major currencies.
