The Nigerian naira continued its upward trajectory in the official foreign exchange market, closing at N1,368.27 against the US dollar on Monday, July 6, according to fresh data from the Central Bank of Nigeria (CBN). This represents a gain of N1.92 or 0.14% from the previous rate of N1,370.19/$1, extending the local currency's recent stability.
Naira Gains Against Pound and Euro
In addition to its strength against the dollar, the naira also appreciated against the British pound, moving from N1,829.89/£1 to N1,826.91/£1. Against the euro, the naira gained N5.63 to close at N1,562.70/€1, compared to N1,568.32/€1 on Friday.
At the GTBank FX counter, the naira strengthened by N1 against the dollar to N1,831/$1, while the parallel market rate remained unchanged at N1,390/$1.
Improved Liquidity and Investor Sentiment
The naira's appreciation is attributed to improved liquidity and positive investor sentiment in the foreign exchange market. Ayodeji Ebo, Managing Director of Stanbic IBTC Holdings Plc, commented: "Higher foreign exchange liquidity, as well as investor sentiment, are the primary drivers behind the local currency's stability, especially with demand and supply dynamics in the FX market having become more balanced."
Ebo added: "The CBN's proactive policy actions have continued to foster transparency and price discovery in the market."
External Reserves Hit $51.46 Billion
Data released earlier shows that Nigeria's gross external reserves have risen to $51.46 billion, boosted by ongoing forex inflows. This increase has bolstered confidence in the country's foreign exchange market and supported the naira's recent gains.
CBN Official Exchange Rates (Selling Rates) on July 6
The CBN released the following official selling rates for various currencies:
- CFA: N2.38
- Chinese Yuan (Renminbi): N201.32
- Danish Krone: N209.04
- Euro: N1,562.70
- Japanese Yen: N8.43
- Saudi Riyal: N364.34
- South African Rand: N84.27
- SDR: N1,857.41
- Swiss Franc: N1,697.81
- Pounds Sterling: N1,826.91
- US Dollar: N1,368.27
- WAUA: N1,859.53
- UAE Dirham: N372.54
BDC Operators Yet to Access CBN's $150,000 Weekly Window
Despite the naira's steady gains, Bureau de Change (BDC) operators have reported that they have yet to access the official foreign exchange window announced by the CBN. This comes as the naira appreciated by nearly 7% within two weeks across both official and parallel markets, reaching one of its strongest levels in about two years.
