The naira on Thursday stabilised at N1,584 following a moderation in demand for the dollar, cross foreign exchange (FX) markets.
After trading yesterday, the naira recorded slight loss of 46 kobo as the dollar was quoted at N1,584.95, as against N1,584.49 quoted on Wednesday at the Nigerian Foreign Exchange Market (NFEM), data from the Central Bank of Nigeria (CBN) showed.
The naira appreciated in the parallel market, also known as the black market, gaining N5 to close at N1,615 on Thursday compared to N1,620 the previous day.
Currency traders reported that demand for dollars has remained low and the market has been relatively calm.
Analysts at the research arm of FSDH Merchant Bank Limited said the CBN must remain proactive in managing the FX market by sustaining reforms that build investor confidence and deepen liquidity.
“However, monetary policy alone is not sufficient. Structural reforms and greater fiscal discipline will be critical in reducing inflation, ensuring macroeconomic stability and sustaining long-term growth,” they said in their latest economic note.
Reflecting on the economic strides achieved so far, Cardoso highlighted clear indicators of progress. He noted that the naira has now stabilised at a more sustainable level, and the previously significant disparity between the official and parallel market exchange rates has largely been eliminated. According to him, this development is a direct outcome of the disciplined and deliberate reforms implemented under the leadership of the apex bank.
He explained that the renewed stability of the naira has been pivotal in restoring investor confidence and encouraging autonomous foreign currency inflows through formal financial channels. These inflows, Cardoso noted, are helping to diversify Nigeria’s foreign exchange sources beyond the traditional heavy reliance on oil revenues. (BusinessDay)
