The naira appreciated against the dollar at the close of trading on Wednesday across various foreign exchange (FX) markets, continuing a trend of relative stability driven by ongoing economic reforms.
At the Nigerian Foreign Exchange Market (NFEM), the naira gained N3.42, closing at N1,526.16 per dollar compared to N1,529.58 on Tuesday, according to data from the Central Bank of Nigeria (CBN).
Similarly, the naira strengthened in the parallel market, appreciating by N10 to close at N1,560 per dollar, representing a 0.6 percent increase from the N1,570 recorded the previous day.
The foreign exchange market recorded a significant boost in United States dollar liquidity last week, spurred by increased inflows from Foreign Portfolio Investors (FPIs) and stronger sell-side participation. The improved supply supported a modest appreciation of the naira, which gained N6.43 to close at N1,545.20 per US dollar, according to a report by Access Bank.
Looking ahead, analysts at Access Bank noted, “Sustained FPI inflows are expected to keep downward pressure on exchange rates in the near term, provided the current momentum in capital inflows is maintained.”
