The Naira strengthened against the United States dollar at the official foreign exchange market on Wednesday, closing at one thousand, three hundred and fifty-seven naira to the dollar.
Market data showed the naira gained nearly ten naira from the start of May, supported by increased demand for the local currency and continued interventions by the Central Bank of Nigeria. Analysts said trading activity in the foreign exchange market has also increased in recent days.
Financial experts say high interest rates and stronger investor demand for naira-denominated assets, including treasury bills, have helped support the currency. More than ten trillion naira in liquidity is expected to enter the financial system this month through maturing treasury bills and open market operations.
Also Read: Tinubu Rejects Two Bills Over Fiscal and Policy Concerns
Meanwhile, the US Dollar Index remained weaker against major global currencies amid expectations that the Federal Reserve System may slow further interest rate tightening following softer economic data in the United States.
Leave feedback about this
You must be logged in to post a comment.