The Nigerian Naira has hit a seven-month high against the US dollar, thanks to a significant boost in Nigeria’s foreign reserves.
Nigeria’s foreign reserves rose by $4.1 billion, contributing to the Naira’s appreciation. The reserves have reached over $40 billion, marking their highest level in 33 months.
The Naira has strengthened to N1,497 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM). In the official forex market, the Central Bank of Nigeria (CBN) set the dollar rate at N1,506.0850 per dollar.
The disparity between the official and parallel markets has narrowed to just N10, with the Naira trading at N1,515 per dollar in the parallel market.
The CBN’s reforms and policies have contributed to the Naira’s stability. The bank’s goal to increase diaspora remittances to $1 billion monthly is expected to further bolster the Naira.
The Naira’s appreciation is a positive sign for the Nigerian economy, and analysts believe this momentum could shift year-end forecasts for the local currency.
The Naira’s seven-month high is a testament to the CBN’s efforts to stabilize the currency and improve the country’s foreign exchange market.
