Dollar crashes in official market as naira closes at N1,315.67
By Aboki Forex —
The naira traded as low as N1,302 per dollar at the official foreign exchange market on Thursday, before closing at N1,315.67. That was an N11 gain from the previous day's close of N1,326.69, according to Central Bank of Nigeria data.
The latest move brings the currency closer to the N1,300 mark and extends its month-to-date gain to roughly N17. Analysts say improved foreign exchange liquidity and increased activity by financial institutions acting as market makers are supporting the naira.
Naira strengthens at official window
Market data showed Thursday's transactions were conducted between N1,302 and N1,324 per dollar. The closing rate of N1,315.67 reflects stronger demand and supply dynamics in the official market.
The naira has now gained about N17 since the beginning of the month. The appreciation suggests that improved dollar supply is helping to ease pressure on the local currency.
Forex turnover jumps over 62%
Trading activity rose sharply alongside the naira's gains. CBN data showed turnover in the Nigerian Foreign Exchange Market reached $152.04 million on Thursday, up more than 62% from $93.66 million the previous day.
The number of deals also climbed to 153 from 105 a day earlier. The jump in transaction volumes points to greater liquidity and broader participation in the official FX market.
Reserves move closer to $54 billion
Nigeria's gross external reserves are now close to $54 billion, helped by recent inflows from various sources. A stronger reserve position gives the CBN and the wider FX market a bigger buffer to manage liquidity and market pressures.
If current liquidity conditions are sustained, the naira could keep receiving support in the coming weeks. However, global currency moves, crude oil prices, capital inflows and domestic dollar demand will determine the currency's direction.
For now, the naira's push toward N1,300 is lifting hopes of greater stability in Nigeria's foreign exchange market. That is a positive signal for businesses that rely on the official window for dollar access.