The naira strengthened to N1,360.15/$ at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, recording its strongest closing level since June 16 as the currency continued its gradual recovery against the U.S. dollar.
Data from the Central Bank of Nigeria (CBN) showed that the naira gained N4.85 from the N1,365/$ recorded on Tuesday, representing a 0.36% appreciation against the dollar.
The latest movement extends the currency’s recovery following renewed pressure in Nigeria’s foreign exchange market in July.
What you should know
The naira has recorded a steady improvement in its official-market value in recent weeks, moving closer to levels last seen in June.
The currency has strengthened by N21.35, or 1.55%, from the N1,381.50/$ recorded on July 17.
It has also gained N14.35, or 1.04%, compared with its July 21 closing rate of N1,374.50/$.
Despite the recent appreciation, the naira remains slightly weaker than its June 16 closing level of N1,356.50/$.
What the data is saying
Naira gains 0.36%
The naira closed at N1,360.15/$ on Wednesday, compared with N1,365/$ a day earlier.
The N4.85 gain represents a 0.36% appreciation against the U.S. dollar.
Strongest level since June
Wednesday’s closing rate represents the naira’s strongest level since June 16, when the currency closed at N1,356.50/$.
The latest appreciation brings the currency closer to its mid-June levels after coming under renewed pressure in July.
1.55% gain since July 17
From the N1,381.50/$ recorded on July 17, the naira has appreciated by N21.35, equivalent to a 1.55% gain.
The currency has also strengthened by 1.04% from its July 21 closing rate of N1,374.50/$.
Recovery continues
The latest movement suggests that the naira’s gradual recovery in the official FX market has continued into August.
However, the currency still needs to strengthen further to return to its June 16 closing level of N1,356.50/$, making Wednesday’s rate a significant improvement but not yet a full return to its mid-June position.
