By Ayomide Otitoju
The naira opened at ₦1,385.27 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, as traders reported steady supply from autonomous sources.
Market analysts say several factors are shaping the currency’s performance as the market enters April. Traditionally, the first day of the quarter sees a surge in demand as firms settle international invoices. However, a high level of system liquidity—exceeding ₦8 trillion at the end of March—has prevented significant spikes in the exchange rate.
Despite a moderate decline in Nigeria’s gross reserves toward the end of March, the central bank’s accounts remain substantial at around $49.40 billion. Sustained crude production and favorable global prices for Bonny Light continue to provide adequate foreign exchange liquidity to meet domestic demand.
Stability in the official forex window is largely attributed to the consistent use of the Electronic Foreign Exchange Matching System (EFEMS), which has helped curb the sharp, unpredictable volatility seen in previous years.
Traders expect the naira to trade within a ₦1,380–₦1,420 range during the first week of April, as the market awaits the Central Bank of Nigeria’s next move on interest rates.
