The Nigerian naira appreciated against the US dollar on Tuesday as improved liquidity conditions and a significant rise in FX supply eased pressure across both the official and parallel markets.
The currency strengthened by 0.21% at the Nigerian Foreign Exchange Market (NFEM), settling at ₦1,445.39/$, while the parallel market saw an even sharper gain of 1.12%, with the naira closing at ₦1,458/$.
Analysts attributed the improved performance to the $186.6 billion FX injection made by the Central Bank of Nigeria (CBN) the previous week, a move aimed at stabilising exchange rate volatility and restoring market confidence.
Market data from the CBN revealed that the naira appreciated to an intraday high of ₦1,450.50, compared to ₦1,452 from the last session, signalling eased pressure in the official market. The intraday low also firmed to ₦1,443, from ₦1,445 recorded a day earlier.
Investment firms reported that FX turnover increased significantly as foreign portfolio investors ramped up supply, anticipating further monetary interventions to support rate stability. Market outlook suggests the naira may hover around ₦1,500/$ in the near term, backed by expectations of sustained CBN intervention.
In a further boost to currency stability prospects, Nigeria’s gross external reserves rose to $44.668 billion as of November, according to the latest CBN records. CBN Governor Yemi Cardoso recently disclosed that reserves had surpassed $46.7 billion, representing nearly 11 months of import cover based on the country’s latest trade data.
