Naira Gains Ground Against Dollar as Reserves Rise

On September 21, the Nigerian naira appreciated by approximately 0.11%, closing at ₦1,329.8019 per dollar, compared to ₦1,331.2027 on the previous Friday. This recovery occurred as Nigeria's gross external reserves increased to $54.72 billion, bolstering support for the local currency amid ongoing foreign exchange inflows.

However, trading activity in the official market saw a decline, with interbank foreign exchange turnover falling by 28.4% to $116.41 million from $162.67 million. The number of transactions also decreased from 127 to 102, indicating reduced trading among financial institutions.

The trading at the Nigerian Foreign Exchange Market (NFEM) fluctuated between ₦1,327.01 and ₦1,336 per dollar, reflecting variations in demand and supply. This appreciation marked a reversal from the naira's weaker performance in the preceding week, despite the slowdown in trading activity.