The Nigerian foreign exchange market ended the week on a positive note as the Naira demonstrated renewed strength against the US dollar, supported by increased forex supply and growing reserves.
According to FMDQ Exchange data, the Naira gained significant ground in the official market, closing at N1652.62 per dollar on Friday. This represents a N5.95 appreciation from Thursday's rate of N1658.57, continuing a promising trend that has seen the local currency gain N35 against the dollar in just 48 hours.
The parallel market, often considered a barometer of forex liquidity, also reflected this positive momentum. Street traders quoted the Naira at N1750 per dollar on Friday, showing improvement from Thursday's rate of N1755.
A key driver of this appreciation appears to be the surge in FX transaction volume, which jumped significantly to $243.05 million on Friday - marking a substantial increase from the previous day's $163.66 million. This enhanced liquidity suggests growing confidence in the market and potentially more stable exchange rates ahead.
Adding to the positive outlook, Nigeria's external reserves have shown remarkable resilience, reaching $40.277 billion as of November 20, 2024. This robust reserve position strengthens the Central Bank's capacity to maintain market stability and support the Naira.
However, it's worth noting that on a week-on-week comparison, the Naira recorded a marginal decline of N0.35 against the dollar from last Friday's rate of N1652.25, indicating that some challenges still persist in achieving sustained stability.
What are your thoughts on these recent developments in Nigeria's forex market? Have you noticed any impact on your business or daily transactions? Share your experiences in the comments below and help others stay informed by sharing this post with your network.
0 Comments