The naira strengthened slightly in Nigeria’s official foreign exchange market on Wednesday, appreciating 90 kobo to close at ₦1,382.18 per dollar, as external reserves climbed to a fresh 17-year high of $51.87 billion.
Central Bank data showed the naira gained ground even as it held steady at ₦1,420 in the parallel market, narrowing the official-parallel gap slightly to ₦38. Market activity on the official window strengthened, with deals and turnover both rising sharply from the previous session, though interbank trading weakened over the same period.
Reserves are now up 37.8% year-on-year, driven by stronger crude exports, rising oil production, diaspora remittances, and continued foreign portfolio inflows drawn by Nigeria’s high interest rates, according to Quest Merchant Bank. The bank said reserves now cover 14.4 months of import needs.
Not all analysts share the optimism: Fitch Ratings has projected reserves could fall to around $47 billion by year-end, citing Nigeria’s widening budget deficit, while the IMF has urged the Central Bank to slow reserve accumulation and let market forces determine the naira’s fair value.
Also read: Condolences pour in for ex-Aso Rock chaplain
Leave feedback about this
You must be logged in to post a comment.