Naira Strengthens to ₦1,493/$ in Official Market Amid CBN Reforms

LAGOS, NIGERIA – In a positive turn for Nigeria’s economy, the naira appreciated to ₦1,493 per US dollar in the official market, signaling a boost in investor confidence and the impact of ongoing foreign exchange (FX) market reforms by the Central Bank of Nigeria (CBN).Naira Strengthens to ₦1,493/$ in Official Market Amid CBN Reforms

CBN’s Policies Drive Market Stability

The naira’s recent gains follow the CBN’s strategic interventions aimed at stabilizing the exchange rate and reducing speculative activities in the FX market. Measures such as increased FX supply, crackdown on round-tripping, and engagement with foreign investors have contributed to the local currency’s rebound.

Analysts React: More Gains Expected?

Financial experts suggest that if the CBN maintains its tight monetary policies, the naira could experience further appreciation in the coming weeks. However, challenges such as inflation, external debt, and oil revenue fluctuations still pose risks to long-term stability.

What This Means for Nigerians

A stronger naira could lead to lower import costs, reduced inflationary pressures, and improved business conditions, benefiting consumers and businesses alike. However, economic watchers caution that sustainable gains will depend on continued FX market reforms and diversification of Nigeria’s revenue sources.

For real-time updates on Nigeria’s FX market, visit ARISE FACTS or DAILY PULSE REPORT

There were two times in 2024 when the official exchange rate hit N1,400 per dollar.
A trend of rising official exchange rates has been going on since the CBN Foreign Exchange Code went live this week.

In the same way, the Naira rose from N1,630 per dollar on Wednesday to N1,620 per dollar on the black market.
Because of this, the difference in price between the underground market and the NFEM rate grew from N124 per dollar on Wednesday to N127 per dollar today.

Naira Strengthens to ₦1,493/$ in Official Market Amid CBN Reforms