Market News

By Oluwakemi Abimbola

The naira sustained its appreciation trend at the Nigerian Foreign Exchange Market, closing at 1,351.02/dollar on Tuesday.

This ongoing strengthening seen at the start of the month continued into the latest session, as reflected in the NFEM rate.

At the official window, the naira started this week on a positive note, appreciating by 86 basis points (N11.80) against the American dollar, supported by strong supply from Foreign Portfolio Investors and local participants. The naira traded within the 1,360.00/$ and 1,352.50/$ band during the session before settling at 1,354.26/$ on Monday.

In the past week, the naira gained about N20.36 to close at 1,366.19/$. Although it recorded slight reversals on 5 and 6 February, the broader trajectory remains positive, with the currency appreciating by approximately 2.8 per cent relative to its 2 February position at the official window.

Market observers note that the sustained moderation in the NFEM rate signals improved liquidity conditions and relative stability in the regulated segment of the foreign exchange market.

At the parallel market, analysts are also reporting that the naira is gaining strength. CardinalStone, in its market summary, indicated that the naira rose 0.21 per cent to close at 1,447.00/$.

The experts at Cowry Assets Management observed that the domestic currency remained stable at $1,426 in the parallel market.

AIICO Capital had projected that the naira would sustain its positive momentum this week, saying, “Barring any significant shift in supply, we expect the naira to trade within a similar range, supported by steady inflows and reserve accretion.”