WATCH THE VIDEO HERE The naira rose against the US dollar across foreign exchange (FX) markets due to sufficient foreign currency liquidity. Spot FX data from the FMDQ platform showed the naira appreciated by 0.04% in the official window, closing at ₦1,500.95 per US dollar after FX intervention sales to banks. Similarly, the naira climbed to ₦1,550 per dollar in the parallel market in the absence of demand pressures from invisible FX users. Hence, the exchange rate gap collapsed to N50 as exchange rate stability improved. Analysts said foreign portfolio investors have continued to drive FX inflows into the market amidst increased positioning in the financial market, ramping up stocks with attractive valuation and increasing position in the fixed income market on the back of elebated yield. In January, the Nigerian Foreign Exchange Market demonstrated relative stability, supported by improved liquidity from Foreign Portfolio Investors (FPIs), International Oil Companies (IOCs), and Central Bank of Nigeria (CBN) interventions. The naira fluctuated within a broad range of $/₦1,440.00 to $/₦1,570.00, with notable strengthening mid-month as increased supply eased demand pressure.
Naira rises to N1500, exchange rates gap collapsed to N50
