The Naira continued its recent upward momentum on Wednesday, closing at ₦1,596.70 per US dollar in the official foreign exchange market, according to figures released by the Central Bank of Nigeria (CBN). This marks a ₦3.33 gain from Tuesday’s rate of ₦1,600.03, representing a 0.21% appreciation. The local currency had already posted a minor gain earlier in the week, indicating a slow but steady improvement.
Analysts point to improved foreign exchange liquidity as a key driver behind the Naira’s recent strength. The CBN’s continued intervention in the forex market appears to be yielding results, with liquidity gradually returning and pressures on the Naira easing. These interventions are seen as part of broader efforts to support macroeconomic stability.
In addition to liquidity improvements, recent monetary policy adjustments seem to be restoring some investor confidence. Market observers believe that ongoing reforms by the CBN are starting to resonate, providing a more stable footing for the local currency in the short term.
Despite broader economic concerns such as inflation and high interest rates, the Naira’s current performance offers a glimmer of hope. There’s cautious optimism among traders and financial analysts that these gains might hold—provided the CBN maintains its current policy direction and manages external shocks effectively.
As the week progresses, all eyes remain on the Naira’s performance. With Nigeria’s government pushing for economic reforms and trying to attract foreign investment, the strength of the local currency could serve as a barometer of the broader economic recovery.
Source: The Guardian