Naira Strengthens To N1,357/$

The value of the naira opened this week on a stronger note, amid rising global oil prices and improved foreign exchange inflows, closing on Monday at N1,357.77 to the dollar while holding steady at the parallel market.

Data on the Central Bank of Nigeria (CBN) website showed that the value of the naira appreciated by N8.46 to close at N1,357.77 per dollar on Monday at the Nigerian Foreign Exchange Market (NFEM), representing a 0.62 per cent gain from N1,366.23 quoted last Friday.

At the parallel market, the value of the naira remained stable at N1,410 to the dollar, bringing the premium between the official and parallel rates to N52.23, as against N43,77 which it was on Friday, as the gains in the official end of the market outpaced the gains at the parallel market

Analysts at Cordros Capital note that the naira is likely to remain under moderate pressure, primarily reflecting subdued foreign portfolio inflows amid the ongoing US–Iran conflict, which continues to heighten investor risk-off sentiments.

They, however, noted that “stronger export receipts and the Central Bank of Nigeria’s measured foreign exchange interventions should help contain excess volatility in the forex market and limit the risk of sharp currency depreciation.”

Meanwhile, the 30-day moving average of the gross external reserves rose to $50.027 billion as of March 11, crossing the $50.00 billion mark and extending the build-up to an 11th consecutive week.