Nigerian naira strengthens as weekly FX turnover doubles

The Nigerian naira has shown signs of strengthening and increased stability within the Nigerian Autonomous Foreign Exchange Market (NAFEM). The currency recently closed at approximately ₦1,346.49 to ₦1,346.90 per US dollar, marking a modest appreciation following recent volatility.

Weekly foreign exchange turnover saw a significant surge, more than doubling to reach approximately $4.52 billion. This represents a 107.6% increase compared to the previous week's turnover of roughly $2.18 billion.

Market analysts attribute the naira's resilience and improved liquidity to several factors, including Central Bank of Nigeria (CBN) liquidity management reforms, increased domestic refining of petroleum products which has reduced demand for foreign exchange from fuel importers, and improved dollar supply through official channels. The narrowing gap between official and parallel market rates also suggests growing stability.