Naira extends gains, strengthens further against dollar

The Naira appreciated further on Wednesday, closing at N1,596.70 per U.S. dollar in the official market, continuing a positive trajectory seen in recent sessions.

Data published on the Central Bank of Nigeria’s (CBN) website indicated the local unit appreciated by N3.33 compared to the previous day’s rate.

This marks a 0.21 per cent gain from Tuesday’s closing rate of N1,600.03, reflecting sustained upward movement by the domestic currency.

The Naira had already recorded a slight increase of 0.02 per cent earlier in the week.

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Analysts have linked the currency’s improved showing to better foreign exchange liquidity and consistent interventions by the CBN.

“Improved foreign exchange liquidity and sustained interventions by CBN” have been credited for the positive trend, according to market analysts.

Observers also believe recent confidence in monetary policy reforms is helping bolster the Naira.

“Market observers also note that increased confidence in monetary policy reforms may be contributing to the currency’s steady performance in recent days.”

Despite persistent economic headwinds, recent market activity suggests a sense of cautious optimism among forex traders and investors.

“In spite of ongoing economic challenges, the recent movements suggest cautious optimism among traders and investors watching the foreign exchange market.”

The Naira’s performance this week remains under close watch as efforts continue to attract foreign capital and reinforce economic stability.