THE naira appreciated to N1,315 against the United States dollar on Thursday at the official section of the foreign exchange (FX) market, recording one of its strongest performances in recent years.
News Point Nigeria reports that data from the Nigerian Foreign Exchange Market (NFEM), Nigeria’s official FX market, showed that the currency gained 0.84 per cent from the N1,326 per dollar recorded on September 2.
The figures were reported by this newspaper, which attributed the latest exchange-rate data to the Nigerian Foreign Exchange Market (NFEM), while CBN data also put Thursday’s NFEM rate at about N1,315.67 per dollar.
The latest appreciation means the naira has returned to the N1,300 level, with the last time the exchange rate hit that level recorded in April 2024.
The latest value also represents the currency’s strongest performance since the Central Bank of Nigeria (CBN) introduced the Electronic Foreign Exchange Matching System (EFEMS).
At the parallel section of the market, the naira also appreciated to N1,400 per dollar on Friday, from N1,410 per dollar on Thursday, according to the figures contained in the report.
The naira’s appreciation across both FX markets comes at a time when the country’s external reserves are hovering at their highest level in more than 17 years.
As of Thursday, the FX reserves stood at $54.08 billion, according to the CBN, compared with the $45.56 billion recorded on January 2.
The latest reserve position represents an increase of $8.51 billion, or 18.69 per cent, year-to-date, further strengthening Nigeria’s external position.
The naira’s recent performance has continued to attract attention as the currency records gains in the official foreign exchange market following months of improved market conditions and stronger foreign-exchange liquidity.
The development also comes amid a broader improvement in Nigeria’s foreign-exchange position, with rising external reserves providing additional support for the country’s capacity to meet foreign-exchange obligations and intervene in the market when necessary.
The return of the naira to the N1,300 range marks a significant movement from the sharp depreciation witnessed following the foreign-exchange reforms introduced in 2023.
The sustained appreciation is being closely watched by businesses, investors and consumers, particularly because movements in the exchange rate have implications for the cost of imports, foreign-denominated obligations and other dollar-linked transactions.
The latest figures therefore point to a continued strengthening of the naira at the official market, even as a gap remains between the official and parallel-market rates.