By Ayomide Otitoju
The Naira opened Monday’s session at the Nigerian Foreign Exchange Market (NFEM) with marginal gains, trading at ₦1,377.80 per Dollar, slightly stronger than the ₦1,380.79 recorded at the close of last week.
Trading activity in the official window, supported by the Electronic Foreign Exchange Matching System (EFEMS), remains robust, with the platform continuing to enhance transparency and price discovery, keeping the rate near the ₦1,380 mark despite a generally stronger global Dollar.
Market analysts attribute the relatively stable exchange rate to Nigeria’s foreign exchange reserves, which recently reached $49.29 billion. The Central Bank of Nigeria projects reserves could rise to $51.04 billion in the medium term, supported by steady oil receipts and foreign investment inflows.
The Monetary Policy Committee (MPC) has maintained the benchmark interest rate at 26.5% to curb inflation and attract foreign portfolio investors to Naira-denominated assets. Additionally, reforms in the remittance sector, including the formalisation of diaspora transfers through designated settlement accounts, have increased daily foreign currency supply to the banking system.
