Naira settles below ₦1,600 as CBN reforms boost market confidence

The naira traded below ₦1,600 in the parallel market on Wednesday, boosted by supportive forex interventions by the Central Bank of Nigeria (CBN). 

Market data revealed that the currency settled at ₦1,590/$1 on Wednesday from ₦1,595-N1,600/$ on Tuesday. The local currency strengthened to N1,549/$ in the Nigerian Foreign Exchange Market (NFEM).

CBN data Nigeria showed the naira marginally strengthened from ₦1,550/$ to ₦1,549/$ at the official market. Analysts say the apex bank’s FX interventions with macroeconomic policy changes and foreign capital inflow policies will likely keep the naira’s exchange rate at these levels for the midterm.

As of Thursday morning, the currency was trading around ₦1,560/$1 at 10:20 AM WAT. Improved sentiment, driven by economic reform programs, has been noted to boost foreign investors’ confidence and perception of the Nigerian capital market.