Naira Gains Across FX Markets on Robust Dollar Liquidity
The naira strengthened across both exchange channels on Thursday, appreciating by 0.34% to N1,371.51/$ at the Nigerian foreign exchange market (NFEM) window.
The spot rate also appreciated by 0.21% to N1,390/$ in the parallel market, reflecting improved currency sentiment across both the regulated official segment and the informal foreign exchange market.
The Central Bank of Nigeria (CBN) daily FX publication showed that the local currency traded between N1362 and N1390 per dollar at the official window.
Following the CBN’s recent intervention, the flow of FX payments has fallen behind aggregate US dollar volume at the official window. The surge was driven by inflows from foreign investors, exporters and non-bank corporates, among others.
With gross external reserves standing above $50 billion, the highest since 2009, analysts said the naira has a positive outlook, amidst projections that the FX rate could rise to N1300 per dollar in the first half of 2026.
In the global market, increased demand for the US dollar has strengthened the greenback against major trading pairs.
Specifically, the US dollar rose against the euro for a third straight day on Thursday, inching closer to its strongest levels this year as surging energy prices sparked worries about Europe’s import-dependent economy and drove investors toward the safety of the greenback.
Oil prices rose sharply as Iran stepped up attacks on oil and transport facilities across the Middle East, fueling concerns of a prolonged conflict and potential disruption to oil flows.
Iran’s new Supreme Leader, Mojtaba Khamenei, on Thursday vowed to keep the Strait of Hormuz closed. The rapid increase in energy prices poses a threat to global growth, with economists warning that a prolonged conflict in the Middle East would further amplify the economic impact. Equities Investors Gain N649bn as Nigerian Stocks Rebound
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