Naira Gains Against Dollar Due to Increased Diaspora Remittances

The Nigerian naira experienced a slight gain against the US dollar, attributed to rising diaspora remittances and foreign exchange inflows. The naira strengthened in both the official and parallel foreign exchange markets, supported by increased foreign inflows, including robust diaspora remittances and foreign portfolio investments.

The Central Bank of Nigeria (CBN) noted a surge in diaspora remittances, reaching $200-600 million in the last two months, significantly boosting the country's foreign exchange reserves. Offshore investor inflows also increased, reflecting steady foreign interest amid favorable global economic conditions.

The CBN's enhanced foreign exchange profile, with reserves rising to $47 billion, provides greater capacity to support the naira against the US dollar.