Naira Surges Past Year-End Estimates to N1,343 Against US Dollar

The Nigerian naira spot rate has shown significant improvement, appreciating to N1,343 against the US dollar on Tuesday. This development marks a gain in momentum for the currency in the foreign exchange market.

The naira's appreciation is supported by inflows from foreign portfolio investors, non-bank corporates, and the Central Bank's latest FX injection. According to data released by the authority, the official exchange rate closed at N1343.3202 on Tuesday from N1349.5372 per US dollar.

Market analysts anticipate that structural FX-supportive developments will continue to provide medium-term stability, including improvements in external reserves, which stand above $52 billion. The recent upgrade of Nigeria's rating from B, to B by S&P is also expected to attract more foreign investments and support the naira.

However, it's worth noting that interbank FX turnover declined to $364.709 million, down by about 17% in 24 hours from $437.529 million reported on Monday.