Naira strengthens against dollar as CBN releases new exchange rates

The naira appreciated against the United States dollar and other major foreign currencies on Wednesday, July 22, following stronger foreign exchange liquidity in the official market. Data from the Nigerian Foreign Exchange Market (NFEM) showed the naira gained N5.68, or 0.41%, to close at N1,369.63/$1, compared with N1,375.31/$1 recorded in the previous trading session.

Naira gains across official and parallel markets

The local currency also strengthened against the British pound, appreciating by N8.01 to trade at N1,833.12/£1, down from N1,841.13/£1. Against the euro, the naira gained N4.75 to close at N1,563.03/€1, compared with N1,567.78/€1 a day earlier.

In the parallel market, the naira appreciated by N5 against the US dollar to trade at N1,400/$1, from N1,405/$1 on Tuesday. At the GTBank FX desk, the local currency also gained N5, with the exchange rate improving to N1,383/$1 from N1,388/$1 in the previous session.

Turnover jumps as dollar liquidity improves

The latest appreciation followed improved dollar liquidity in the market, supported by stronger inflows from foreign portfolio investors, exporters and non-bank corporates. Total turnover at the official FX market rose by 29% to $416.42 million, up from $322.66 million recorded in the previous trading session.

The number of completed deals also increased significantly to 198, compared with 110 on Tuesday, indicating stronger market participation and improved liquidity.

CBN releases new rates for major currencies

The Central Bank of Nigeria released the following selling rates for major currencies: CFA Franc at N2.39, Chinese Yuan (Renminbi) at N202.21, Danish Krone at N209.05, Euro at N1,563.03, Japanese Yen at N8.40, Saudi Riyal at N364.85, South African Rand at N83.40, SDR at N1,859.14, Swiss Franc at N1,685.08, Pound Sterling at N1,833.12, US Dollar at N1,369.63, WAUA at N1,867.90, and UAE Dirham at N372.91.

Analysts said the foreign exchange market could remain stable in the near term, supported by Nigeria's gross external reserves, which have risen above $52 billion.

For the naira, the sustained appreciation signals improved confidence in the currency, driven by rising foreign portfolio investments and increased dollar supply. If inflows continue, Nigerian consumers and businesses could see more stable exchange rates, reducing pressure on import costs and inflation.