The naira has stabilized at N1,540 in the official market, supported by diaspora remittances, Eurobond proceeds, and the Central Bank of Nigeria’s (CBN) EFEMS system. These factors have improved liquidity and market confidence, with external reserves standing at $40.73 billion, enhancing the naira’s performance.
The naira has shown significant stability in recent days, trading at around N1,540 per dollar in the official market. Several factors have contributed to this positive trend, including strong inflows from the Nigerian diaspora, proceeds from a recent Eurobond issuance, and reforms introduced by the Central Bank of Nigeria (CBN).
On Thursday, the naira appreciated by N5, closing at N1,540/$, compared to N1,545/$ on Wednesday. It also remained steady at approximately N1,660 in the parallel market. Experts attribute much of this stability to the CBN's implementation of the Electronic Foreign Exchange Matching System (EFEMS), which enhances the transparency and efficiency of forex transactions.
In addition, Nigeria’s recent Eurobond issuance, which raised $1.7 billion, has bolstered investor confidence. The bond was oversubscribed by four times, reflecting strong interest from global investors. This influx of funds, combined with the CBN's proactive measures, has created an environment that supports naira stability in both the official and parallel markets.
