Naira appreciates as Nigeria’s external reserves record first increase in 14 days

Nigerian currency recorded a more impressive day on Tuesday, as Central Bank of Nigeria (CBN) announced an increase in foreign reserves.

Data from FMDQ securities showed that the Naira appreciated against the US Dollar at the Investors and Exporters (I&E) window of the foreign exchange (forex) market by 0.16 per cent or 67 kobo on Tuesday, February 22.

This is despite Naira coming under pressure as demand for foreign currency increased during the trading day.

Data showed there was enough supply at the market as transactions worth $138.95 million was recorded.

However, against the British pounds and euro, CBN data showed Naira depreciated.

The Nigerian currency lost to the Pound Sterling by N2.50 yesterday to sell for N567.08/£1 in contrast to the previous rate of N564.58/£1.

Read also: Naira free fall against US dollar continues at official markets

While against the Euro it appreciated by 8 kobo against the Euro during the session to exchange at N472.56/€1 compared with N472.64/€1 it was traded a day earlier.

There was also a significant movement at the black market as the Naira gained N2 to the dollar to exchange at N573 from N575 a day before

The good performance of Nigerian currency came as CBN revealed that for the second time in February Nigeria’s reserve recorded an increase.

The reserves which have been on a downtrend jumped to $39.82 billion on 22 February from $39.79 billion it stood on 18th February 2021.

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