Naira Strengthens 8% Against Major Currencies in Forex Market

On September 24, the naira traded robustly against major currencies, including the US dollar, euro, and British pound, amid increased liquidity and rising external reserves. The official exchange rate at the Nigerian foreign exchange market (NFEM) closed at N1,327.78, a 0.15% increase from the previous trading day, while the parallel market rate rose by 0.36% to N1,380.00.

This movement narrowed the exchange rate gap between the official and parallel markets to approximately N52, down from N55. The naira also gained against the pound, settling at N1,774.31, and against the euro at N1,521.37.

In the parallel market, it firmed against the euro to N1,565.00 but slipped against the pound to N1,865.00. Despite a significant improvement in forex liquidity, interbank forex turnover fell by 15% to $99.170 million, down from $116.413 million the previous day.

Nigeria's gross external reserves increased to about $55 billion, up from $45.50 billion at the year's start.