Nigerian currency, the naira began the week on a positive note, appreciating by ₦10 against the US dollar on Monday, October 20, after coming under pressure at the close of last week.
Data from the Nigerian Foreign Exchange Market (NFEM) showed that the local currency strengthened to ₦1,465.29/$ at the official window, marking a 0.69 per cent gain compared to Friday’s rate of ₦1,475/$.
According to updated figures from the Central Bank of Nigeria (CBN), the naira also reached an intraday high of ₦1,470/$, signalling a steady rebound from the ₦1,482/$ level quoted at the end of last week.
Market reports indicated that the CBN intervened with a $70 million sale to commercial banks to strengthen dollar supply and help stabilise the exchange rate.
According to Nigerian New platform, Daily Trust, traders submitted that the move helped ease demand pressure and improved market confidence.
FX Inflows Drop 33% to $1.1bn
Despite the appreciation, a report by Coronation Merchant Bank Limited showed that foreign exchange inflows into the official market declined by 33 per cent week-on-week, dropping to $1.1 billion.
In spite of oil price fluctuations, Nigeria’s external reserves recorded a modest increase, rising to $42.696 billion last week.
The uptick, analysts said, reflected improved remittance inflows and moderate oil export receipts.
Market participants expect additional inflows in the coming days, which could further lift reserves and enhance foreign exchange stability.
𝗙𝗼𝗹𝗹𝗼𝘄 𝗢𝘂𝗿 𝗪𝗵𝗮𝘁𝘀𝗔𝗽𝗽 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 𝗧𝗼 𝗚𝗲𝘁 𝗟𝗮𝘁𝗲𝘀𝘁 𝗡𝗲𝘄𝘀 𝗔𝘀 𝗜𝘁'𝘀 𝗗𝗿𝗼𝗽!
