The naira posted its strongest gain versus the US dollar on Wednesday at Nigeria’s official foreign-exchange market, extending a recent improvement driven by tighter liquidity conditions. Central Bank of Nigeria data showed the currency strengthened to 1,369.64 naira per dollar on Wednesday, compared with 1,375.31 naira per dollar on Tuesday in the official window. On a day-to-day basis, that represents an increase of 5.67 naira against the dollar, the highest appreciation recorded so far this week.
In the parallel market, the naira also moved in buyers’ favor. In Abuja, Bureau De Change operators reported that the exchange rate strengthened by 10 naira to end at 1,415 naira per dollar on Wednesday’s close.
The currency’s gains come as Nigeria’s external reserves continued to rise. The country’s foreign reserves climbed further to 52.03 billion dollars as of Tuesday.
The latest movement follows the central bank’s decision earlier in the week: on Tuesday, the Monetary Policy Committee kept Nigeria’s benchmark interest rate unchanged at 26.50 percent.
