The naira strengthened against the United States dollar at the official foreign exchange market on Wednesday, appreciating to N1,369/$ after reversing part of the losses recorded at the close of June amid sustained liquidity in the foreign exchange market.
Latest data from the Central Bank of Nigeria (CBN) showed the local currency gained N7 against the dollar from the N1,376/$ exchange rate recorded on June 30.
The recovery follows a period of volatility in which the naira weakened to N1,389/$ on June 24 before gradually regaining ground during the closing trading sessions of June.
Official market figures indicated that the currency traded within a band of N1,368/$ and N1,378.50/$, while the weighted average exchange rate settled at N1,372.41/$.
Interbank foreign exchange turnover stood at $90.30 million during the session, while no Nigerian Foreign Exchange Market (NFEM) turnover was recorded for the day as of the time the data was compiled.
However, the previous trading session witnessed significantly stronger activity, with total NFEM turnover exceeding $1.06 billion alongside interbank transactions worth $269.90 million, reflecting robust liquidity in the official market.
Analysts say the rebound underscores continued resilience in Nigeria’s official foreign exchange market despite recent fluctuations in the exchange rate.
The recent trading pattern shows the naira closed at N1,385/$ on June 29, N1,384/$ on June 26 and N1,383/$ on June 25 before strengthening after touching N1,389/$ on June 24. It had earlier traded at N1,373/$ on June 23 and N1,369/$ on June 22.
Market observers also noted that global developments continue to influence currency movements, with investors closely monitoring United States economic data and expectations surrounding monetary policy.
The U.S. dollar remained broadly stable ahead of key U.S. employment figures, while comments from officials of the Federal Reserve suggesting easing inflationary risks contributed to cautious market sentiment.
The naira’s latest appreciation comes against the backdrop of improving foreign exchange liquidity and rising external reserves, which recently climbed above $51 billion, their highest level since 2009, providing additional support for Nigeria’s foreign exchange market.
