Naira Face Fierce Dollar Amid Improved FX Liquidity

The naira traded near its all-time low despite improved liquidity.

Market Fundamentals show despite the $2.2 billion facility from the African Import Export Bank (AFREXIMBANK), the naira is still under pressure due to the rising demand for the dollar.

The naira declining trend continues despite recent efforts by the Central Bank of Nigeria (CBN) to support the foreign exchange market through interventions, raising worries about possible effects on the overall economy.

Although the dollar was quoted at N1,435.53, which was higher than the N1,461.90 reported on Thursday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to statistics from the FMDQ, it still traded near its all-time low

However, the amount of dollar transactions, or the daily turnover of the foreign exchange on Nigeria’s official market increased from $156.86 million to $440.13 million.

The U.S. dollar index surged to a seven-week high on data indicating that companies added significantly more jobs in January than anticipated, decreasing the likelihood of Federal Reserve interest rate cuts shortly.

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