Naira Strengthens to N1,521/$ Amid Stable September Performance
The naira on Wednesday strengthened to N1,521.45 per dollar at the official section of the foreign exchange (FX) market — its strongest performance in seven weeks.
According to data from the Nigerian Foreign Exchange Market (NFEM), the local currency appreciated by 0.3 per cent from N1,526.05/$ recorded on September 2. The last time the naira traded stronger was on July 14, when it closed at N1,518.88 per dollar, figures from the Central Bank of Nigeria (CBN) show.
So far in September, the currency has maintained relative stability at the official market. From September 1 to September 3, the naira appreciated steadily, moving from N1,526.09 to N1,526 per dollar before settling at N1,521.45 per dollar on Wednesday.
At the parallel market, the naira also strengthened to N1,545/$, holding steady around N1,540 between September 2 and 3.
Analysts attribute the positive performance to ongoing FX reforms and a favourable investment climate. Speaking to TheCable, Ayokunle Olubunmi, head of financial institutions ratings at Agusto & Co., said: “The positive performance of the economy and the high yield environment that has attracted FPIs have also supported the strengthening FX rate.”
He added that the currency’s resilience could continue barring shocks: “Barring any unforeseen circumstance, the stability should persist.”
Olubunmi further noted that global currency movements are also playing a role: “The depreciating dollar at the global market has also supported Nigeria’s FX rate.
