The Nigerian currency ended August on a firmer note, recording modest gains against the U.S. dollar across the official and parallel markets, with analysts linking the performance to improved foreign exchange inflows and stronger external reserves.
Data from the Central Bank of Nigeria (CBN) showed the Naira appreciating in the Nigerian Foreign Exchange Market (NFEM) from N1,533/$ on Thursday to N1,531/$ on Friday, while the parallel market closed at N1,545/$, stronger than the N1,552/$ recorded the previous day. Overall, the local unit gained 0.14 percent on the NFEM during the month.
The currency’s resilience was underpinned by higher diaspora remittances, which rose by 200 percent to $600 million in the past two months, and increased offshore investor inflows that climbed from $1.5 billion in June to $1.7 billion in August. External reserves also expanded by $1.72 billion to $41.3 billion, giving the apex bank more room to defend the Naira.
CBN Governor, Yemi Cardoso, noted that enhanced remittance systems and firmer exchange rates have made it unnecessary for Nigerians abroad to use informal channels. He said the surge in diaspora inflows is gradually reducing the economy’s reliance on oil earnings while diversifying the country’s foreign exchange portfolio.
With global conditions largely stable and Nigeria attracting renewed carry trade interest, currency watchers believe the CBN’s mix of policies and stronger inflows could sustain the Naira’s momentum into September, barring unforeseen shocks.
We do everything possible to supply quality news and information to all our valuable readers day in, day out and we are committed to keep doing this.
Your kind donation will help our continuous research efforts.
-Advertisement-
-Want to get the news as it breaks?-
