Naira Appreciates Against Dollar Amid Decreased Turnover

The Nigerian Naira witnessed a slight appreciation against the dollar, indicating a positive trend in the forex market. Official data from the Financial Markets Dealers Quotations (FMDQ) revealed that the Naira traded at N1,431.49 to a dollar on Friday, marking a notable increase of N21.79 or 1.5 per cent compared to the previous day’s rate of N1,453.28.

However, despite this uptick, the total turnover in the market saw a decrease, falling to $199.71 million on Friday from $288.47 million recorded on Thursday. At the Investor’s and Exporters (I&E) window, the Naira traded within the range of N1,468 and N1,301 against the dollar, reflecting ongoing fluctuations in the forex market.

The recent clearance of valid foreign exchange backlog by the Central Bank of Nigeria (CBN) has been cited as a significant factor contributing to the positive development in the forex market. This move has instilled confidence among investors and facilitated increased Foreign Portfolio Investors (FPIs) inflows.

Researchers at Cordros Securities noted that the intervention in the forex market has bolstered confidence, leading to renewed interest from foreign portfolio investors in the fixed-income market. As a result, stop rates on the long-end bills have risen above 20.0 per cent, indicating growing investor participation and confidence in Nigeria’s economic landscape.