Naira gains against dollar as forex liquidity improves, turnover jumps 20%
By Aboki Forex —
The naira appreciated against the US dollar on Tuesday, ending several days of pressure as improved liquidity returned to the official foreign exchange market.
Data from the Central Bank of Nigeria (CBN) showed the naira closed at N1,379.6842 per dollar at the Nigeria Foreign Exchange Market (NFEM), up from N1,383.6262 per dollar recorded on Monday.
During the trading session, the exchange rate ranged between N1,370 and N1,384 per dollar, marking some of the strongest levels in the past five trading days.
Market participants linked the rebound to increased availability of foreign currency, which helped meet international payment obligations more smoothly.
Forex turnover also rose sharply. Interbank forex trading volume climbed 20 percent to $269.898 million, up from $223.938 million in the previous session. This reflected stronger participation by financial institutions processing foreign exchange for corporate clients.
However, the total number of interbank deals dipped slightly to 166, compared with 177 transactions recorded on Monday.
Nigeria's external reserves also provided a boost to investor confidence. The country's gross external reserves rose to $51.429 billion, supported by steady inflows from crude oil exports and other key foreign exchange sources.
The naira had faced pressure last week due to heightened demand for dollars, but Tuesday's performance signals a possible return to stability in the official market.