WATCH THE VIDEO HERE The local currency maintained its ground during the fourth trading session of the week, despite the US dollar index oscillating at a two-year high. The Central Bank of Nigeria’s (CBN) ongoing reforms in the foreign exchange market have bolstered liquidity and confidence, with the naira settling below the N1,550/$ threshold in the official market. CBN data revealed that the Nigerian naira strengthened against the dollar on Thursday, closing at N1,540/$—a N5 gain from Wednesday’s closing rate of N1,545/$ at the Nigerian Foreign Exchange Market (NFEM). The naira’s value remained relatively stable at N1,660 to the US dollar in the black market. Price action indicates that naira short sellers still dominate the unregulated market. The demand for foreign exchange, particularly for fuel imports, vacations, and overseas tuition, is expected to keep the naira above N1,500/$ at least until the Christmas holidays. Additionally, the recent Eurobond issuance significantly boosted liquidity, at least in the short term. Nigeria returned to the international bond market earlier this month after a two-year hiatus, successfully raising $1.77 billion. US dollar index holds at a two-year high The US dollar index, which measures the greenback’s strength against six other major currencies, reached its highest levels since November 2022. The Commerce Department reported that economic growth in the world’s largest economy exceeded earlier projections. Third-quarter gross domestic product (GDP) rose by 3.1%, an upward revision from the previously reported 2.8% increase.
Naira holds N1,550/$ support line at Nigeria’s foreign exchange market
