Market News
After volatile week, Naira ends stronger against U.S. Dollar - NAN
By Grace Alegba (NAN)
In a modest show of resilience, Nigeria’s Naira concluded a rollercoaster trading week on a positive note Friday, appreciating by 16 kobo to close at N1,436.57 per U.S. dollar in the official Investors and Exporters (I&E) window, according to Central Bank of Nigeria (CBN) data.
The incremental 0.01% gain from Thursday’s close of N1,436.74 offers a sliver of stability to investors weary of the currency’s persistent volatility, though analysts caution it may signal little more than a temporary breather in a broader struggle against imported inflation and dollar scarcity.
The week’s performance painted a picture of erratic swings, underscoring the Naira’s vulnerability to speculative pressures and external shocks like fluctuating global oil prices, Nigeria’s economic lifeline.
Kicking off Monday, November 3, the local currency opened weaker at N1,436.34, down N14.69 from the prior Friday’s N1,421.73 rate, reflecting weekend jitters over delayed CBN interventions and a ballooning trade deficit. Tuesday brought a swift rebound, with the Naira clawing back N2.68 to N1,433.65, buoyed by modest inflows from diaspora remittances and a surprise uptick in non-oil exports. Yet, the relief was short-lived: Wednesday saw a dip to N1,438.49 as dollar demand surged from importers scrambling ahead of year-end deadlines, exacerbating liquidity strains in the parallel market where rates hovered perilously close to N1,600.
A partial recovery ensued Thursday at N1,436.74, attributed to CBN’s quiet mop-up of excess dollars via over-the-counter sales, before Friday’s close cemented the week’s net gain—albeit razor-thin.
For everyday Nigerians, the implications ripple beyond trading floors. A stronger Naira, even marginally, eases the cost of imported staples like rice and fuel, providing faint relief amid 28% headline inflation.
Yet, with foreign reserves dipping below $35 billion and geopolitical tensions in the Sahel disrupting trade routes, experts urge vigilance.
The CBN, silent on specifics, has hinted at upcoming policy tweaks in its November Monetary Policy Committee meeting to stem depreciation.
