FOREIGN RESERVES HIT NEW HIGH: Naira Appreciates Against US Dollar.
FOREIGN RESERVES HIT NEW HIGH: Naira Appreciates Against US Dollar.
Naira Records First Appreciation Against US Dollar as Foreign Reserves Hit $46.7bn
In a significant development, the Nigerian Naira has recorded its first appreciation against the United States dollar at the official foreign exchange market. According to data from the Central Bank of Nigeria, the Naira strengthened on Tuesday to N1,447.43 per dollar, up from N1,448.03 exchanged on Monday. This represents a gain of N0.6 against the dollar on a day-to-day basis.
This appreciable trend comes as Nigeria’s foreign reserves continue to rise, hitting a new high of $46.7 billion. The reserves had earlier risen to $43.97 billion as of November 1, indicating a significant increase in the country’s foreign exchange earnings. The strengthening of the Naira against the dollar is a welcome development for the Nigerian economy, which has been grappling with a lingering currency crisis.
While the Naira continued to trade at N1,465 per dollar at the black market on Tuesday, the official rate’s appreciation suggests a degree of stability in the foreign exchange market. The Central Bank’s intervention and management of the foreign exchange market have been credited with the appreciable trend, which is expected to boost investor confidence and stimulate economic growth. As the country’s foreign reserves continue to rise, it is likely that the Naira will continue to gain strength against the dollar, providing a much-needed relief to the economy.
