Dollar Drops to N1,338 as Naira Strengthens in Nigeria

On Thursday, the dollar's value in Nigeria's official foreign exchange market dropped to N1,338, reflecting a significant strengthening of the naira due to improved forex liquidity. The naira began trading at N1,446/$ and saw transactions between N1,335 and N1,345 at the Nigerian Foreign Exchange Market (NFEM).

Total foreign exchange turnover reached approximately $191.69 million, indicating ongoing activity from foreign portfolio investors, exporters, non-bank corporates, and other market participants. Despite the improved dollar supply supporting the naira, NFEM interbank foreign exchange turnover decreased by about 19% from $235.99 million to approximately $191.59 million, with the number of deals falling from 213 to 176.

The naira also appreciated against major currencies, closing at N1,820.34 against the British pound and N1,526.12 against the euro. However, the parallel market saw the dollar rise to N1,405 and the euro to N1,600.

Nigeria's gross foreign reserves increased by approximately $185.25 million to $53.30 billion, bolstering the country's foreign exchange buffer.