The naira appreciated by 4.49 per cent in opposition to the U.S. greenback, closing at N1,561.76 within the official Investor and Exporter (I&E) window, reflecting improved efficiency in Nigeria’s international alternate market.
This achieve coincided with regular international oil costs above $77 per barrel and a big rise in market turnover, which surged to $253.68 million—double the day past’s quantity.
All through the buying and selling session, the naira fluctuated, reaching a excessive of N1,650.00 and a low of N1,540.00 earlier than settling at its last fee of N1,561.76.
Within the parallel market, the naira traded between N1,618.72 and N1,620.09, finally closing at N1,621.03 per greenback.
Specialists imagine the rise in turnover is a optimistic sign for market liquidity.
In response to {economic} analyst Dr. Olufemi Adebayo, “The elevated market exercise suggests heightened confidence within the I&E window, which might assist stabilize the forex within the quick time period.”
He added that the naira’s appreciation additionally displays a slight easing of pressures on Nigeria’s international alternate reserves attributable to international oil value stability.
Regardless of this non permanent achieve, the naira has confronted a difficult 12 months. Yr-to-date, it has depreciated over 70 per cent, beginning at N907.11/USD in January and crossing the N1,500/USD mark by October.
The forex hit a report low in February at N1,616.53, earlier than displaying temporary restoration in March when optimistic market sentiment drove the alternate fee right down to N1,303.
This rebound, nevertheless, was short-lived, because the naira weakened once more, reaching N1,668.97 by the top of September.
{Financial} analyst, Bayo Adeleke, famous, “Whereas the present appreciation is a welcome aid, the broader difficulty of forex instability requires extra structural reforms to make sure long-term sustainability.”
He emphasised that the volatility in alternate charges has been pushed by excessive demand for the greenback, Nigeria’s ongoing inflation challenges, and weak export diversification.
One other key issue influencing the naira’s future trajectory is the elevated reliance on native sourcing of jet gasoline from the Dangote Refinery.
In response to aviation skilled, Musa Usman, “This transfer ought to cut back airways’ publicity to international crude value volatility, decreasing their operational prices and doubtlessly boosting investor confidence in Nigeria’s markets.”
Analysts imagine that such strategic shifts might entice international funding and bolster the naira’s worth over time.
Nevertheless, they warning that with out sustained reforms to Nigeria’s international alternate insurance policies and {economic} diversification, the forex might stay susceptible to exterior shocks.