Naira gains against dollar across all markets as external reserves hit $51 billion
By Aboki Forex —
The naira appreciated against the US dollar in the official foreign exchange market on Thursday, closing at N1,369.11 per dollar. This is up from N1,370.46 recorded in the previous session.
Data from the Central Bank of Nigeria shows the local currency has maintained a steady upward trend. Improved dollar liquidity is supporting market activity.
Trades were executed within a range of N1,368 to N1,373 per dollar during the session. This reflects stable demand and supply conditions in the official market.
Market activity also strengthened significantly. Interbank foreign exchange turnover rose sharply to $65.21 million from $39.90 million. That is a more than 63 per cent increase in trading volume.
The gains came despite the absence of direct Central Bank intervention in the forex market over the past six weeks. Market forces and stronger external fundamentals are increasingly supporting the local currency.
Nigeria's external reserves climbed to $51.06 billion. This is the highest level since 2009. The surge is attributed to lower petroleum import bills, stronger crude oil production, and favourable global oil prices.
Analysts say the larger reserve buffer gives the country more capacity to defend the naira against external shocks.