Naira Strengthens Against Euro on CBN Rate Hikes

The naira has strengthened against the Euro, appreciating to N1,552/€ as the Central Bank of Nigeria's (CBN) high interest rates continue to steady the foreign exchange market.

This development comes on the back of the CBN's aggressive policy hikes that have helped absorb excess naira liquidity and reduce pressure on the FX markets.

The European Central Bank's shift to an easing cycle, in response to subdued inflation across the Eurozone, is also expected to reduce the yield spread advantage previously offered by Euro-based debt compared to other asset classes, particularly EM bonds.