The Nigerian naira has maintained its ground against the US dollar, with the official exchange rate in the Nigerian Foreign Exchange Market (NFEM) holding steady around ₦1,370.
This stability is being driven by a significant increase in market liquidity, as daily foreign-exchange turnover has approached the $1 billion mark.
The surge in trading volume suggests a deepening of the official FX market, providing a more robust buffer against volatility.
The central bank’s hawkish monetary stance continues to play a pivotal role in anchoring expectations.
By maintaining tight liquidity conditions, the Central Bank of Nigeria (CBN) has helped narrow the gap between official and parallel market rates, fostering greater confidence among importers and investors.
The combination of policy discipline and improved market depth is creating a more predictable environment for currency transactions.