ABUJA — The Nigerian currency showed signs of stability this week, with the official exchange rate settling at N1533.56 per dollar, a marginal appreciation from the previous day’s N1533.73. The market’s intraday trading on Friday saw the Naira touch a high of N1536 and a low of N1532.50 at the official window.
The local currency stabilized week-on-week from an opening rate of N1533.74, a performance largely credited to the influx of dollars from foreign portfolio investors who participated in the recent Open Market Operations (OMO) bill auction.
This stability was further reinforced by fresh intervention from the Central Bank of Nigeria (CBN), which injected USD 150.00 million into the banking system to boost liquidity on the supply side of the foreign exchange market.
In a related development, Nigeria’s foreign reserves continued their upward trajectory, growing by USD 800.51 million week-on-week to reach a total of USD 40.16 billion. This growth has bolstered market confidence and provided additional support for the local currency.
Analysts from Cordros Capital Limited expressed a positive outlook on the Naira, citing expectations of sustained FX liquidity. They believe that elevated yields, particularly in the OMO market, coupled with a softer US dollar, will continue to attract foreign portfolio inflows in the near term.
The analysts also anticipate that improved market confidence and reduced speculation will encourage steady inflows from domestic sources. They expect the Naira to maintain its current course, with a measured appreciation supported by rising confidence in the foreign exchange markets.
In the equity market, investors recorded a gain of N479 billion as reforms in the insurance sector fueled a rally in insurance stocks.
