The naira appreciated further at the official market on Wednesday, trading at N1,376.19 to the United States dollar, according to data released by the Central Bank of Nigeria.

Data on the CBN’s website showed that the naira gained N25.20 against the dollar at the Nigerian Autonomous Foreign Exchange Market.

The gain represents a 1.8 per cent appreciation compared with Tuesday’s closing rate of N1,401.40 to the dollar at the same market.

The Nigerian currency had earlier recorded about two weeks of depreciation before staging a recovery on Tuesday and extending gains on Wednesday.

Market analysts said improved foreign exchange supply and sustained reforms were gradually boosting confidence in the official market.

Some traders also linked the appreciation to increased inflows from exporters and foreign portfolio investors participating in the market.

The Central Bank of Nigeria has repeatedly stated that ongoing reforms are aimed at improving liquidity, transparency and stability in the foreign exchange market.

A market update on the CBN’s website noted, “The Naira appreciated by N25.20, representing a 1.8 per cent gain against the dollar at NAFEM.”

The development signals a modest rebound for the local currency after weeks of pressure from strong dollar demand and limited supply. (NAN)

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