By Seun Ibiyemi
The naira maintained relative stability against the United States dollar on Tuesday, trading at about N1,363.83/$ at the Nigerian Foreign Exchange Market (NFEM), as ongoing foreign exchange reforms and improved market liquidity continued to support the local currency.
Market data showed that the naira remained within the N1,360 range at the official market, extending a trend of stability recorded in recent trading sessions.
Analysts attributed the performance to sustained foreign exchange reforms, improved transparency in the market and increased dollar liquidity.
At the parallel market, the dollar exchanged at approximately N1,390 for buying and N1,400 for selling, leaving a premium of about N36 between the official and unofficial markets.
The relatively narrow gap reflects growing convergence in the foreign exchange market compared with previous years.
Currency traders said demand for the greenback remained steady across major commercial centres, while supply conditions continued to influence pricing in the informal market.
READ ALSO:Investors lose N782bn as Nigerian stock market extends losing streak
Financial analysts noted that the naira’s resilience has been supported by ongoing monetary and fiscal reforms aimed at improving confidence in the foreign exchange market and boosting foreign currency inflows.
The exchange rate remains a key indicator for businesses, manufacturers, importers and investors, as fluctuations in the value of the naira directly affect the cost of imported goods and services.
Market observers expect the naira’s performance in the coming days to be influenced by foreign exchange inflows, monetary policy decisions, external reserves levels and demand for dollars within the economy.
