Naira Rallies Against USD, EUR, GBP Amid Robust Liquidity
The Nigerian naira has strengthened against major Western currencies, including the US dollar (USD), Euro (EUR), and British pound (GBP) at the foreign exchange market.
The sovereign unit firmed up in both official and informal segments due to robust liquidity and growing external reserves. At the Nigerian Foreign Exchange Market (NFEM), the spot FX rate closed at N1,327.78, 0.15% stronger than Monday's rate.
Despite a 15% drop in interbank FX turnover to $99.170 million, Nigeria's gross external reserves rose to about $55 billion, supporting the currency's growth. The naira has gained 7.52% in the official market and 6.12% in the parallel market year-to-date.
Financial institutions' activities increased sharply during Tuesday's trading session, with a significant improvement in FX liquidity observed between N1,325 and N1,332.5000 per dollar at the NFEM window.