Naira Heads for Best Annual Performance Since 2018
By Aboki Forex —
Nigeria's currency is heading for its best annual performance since 2018, supported by rising dollar inflows from higher oil prices and remittances.
Analysts expect these inflows to help shield the naira from some of the political risks normally associated with Nigeria's election season.
Dollar inflows lift the naira
Higher crude oil prices have brought more dollars into the economy. Remittances from Nigerians abroad are also adding to the supply of foreign exchange.
This has helped the naira strengthen against the dollar this year.
Election season buffer
In past election cycles, the naira often came under pressure. But the current inflow of dollars is expected to reduce that risk.
The average forecast of four analysts surveyed points to further gains before the end of the year. If confirmed, the annual gain would be the best since 2018.