Naira Expected to Stay Below N1,400/$ During Festivities

The Naira is expected to trade below N1,400/$ throughout the festive season, with the official Nigerian Autonomous Foreign Exchange Market (NAFEM) rate around 1,350/$. This stability is attributed to rising foreign reserves, which exceed $55 billion, and increased diaspora remittances.

The official rate is forecasted to remain within the 1,290–1,400/$ range for the remainder of the year. The Central Bank of Nigeria (CBN) is actively involved in the foreign exchange market to reduce volatility and narrow the gap between the official and parallel market rates.

Seasonal demand for foreign exchange is anticipated due to increased purchases for the holiday season, including travel and merchandise. The parallel market rate is approximately N1,390/$.

The CBN's interventions are crucial, especially if the Naira's resistance level at N1,280/$ is breached, which could lead to significant actions by the bank.