Make we jam small gist: Naira don show with fine strength as e close strong for N1455 per US dollar last week. This na for Central Bank of Nigeria (CBN) official forex market where liquidity pressure no dey disturb am. My padi, if you fit hold Naira like dis, e fit make you feel like you don win lottery!
Last Friday, Naira carry itself well, strengthen by 0.79% to ₦1,455.17 for official window. E even touch intraday high of N1462.5000. That’s some serious move for currency matter! (Naira dey learn how to dance toe-to-toe with dollar) This week, CBN step in, sell about USD22.20 million to banks wey get authorization. No wahala for liquidity sha, as e dey flow like palm wine during village festival.
Now hear dis, the matter dey sweet well-well as Nigeria’s foreign reserves don increase for 13 weeks straight! E don rise by USD31.63 million to USD42.58 billion this week. Even the forex forward contracts dey smile as Naira rates dey appreciate across the board. 1-month forward contract don show +0.7% to NGN1,490.79/USD, while 3-month don rise by 0.9% to NGN1,537.97/USD. E be like Naira dey train for Olympics!
Analysts dey shine light on top Naira matter, say dem get positive outlook for am. (Naira dey chop well well, no be small). Dem dey believe say better FX liquidity go still dey flow. Plus, we get rising non-oil exports wey dey boost the market confidence. This na good news for inflows o! Externally, our healthy FX reserves and that sweet current account position dey catch foreign investor eye as dem prepare to fill our market with their cash. Money dey call money, my people!
So, how we go fit maintain this momentum? As dem dey talk, the shift towards global monetary easing and healthy reserves go help us. Make we dey watch closely as naira and dollar dey pursue the dance floor – who go carry the crown?
All these money palava go make sense for our local economy, but make we dey chill. Naira dey try, but we go still dey watch am like soccer match. Who know wetin go happen tomorrow? Na only time go tell!
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