Naira Don Shine Like Diamond, FX Reserves Don Increase!

Lagos, Nigeria – E be like say naira don finally catch fire as e dey rejoice over some serious cash infusion! On Wednesday, naira sharp up to N1,506.08 to $1, thanks to some sweet foreign oil inflows wey add $4.1 billion between July and August.

According to data wey come from Central Bank of Nigeria (CBN), this naira gains don make am reach the highest level wey e don see in seven months! Na this same level wey we see on March 5, when naira comot N1,500.80/$, before e go go relax for a while. Na real stability, as e no dey shake like person wey don drink too much palm wine. (E fit reign on top for some time, but who sabi?!)

Before this Wednesday, naira dey enjoy small stability but it don finally find higher ground. E climb to six-month high of N1,514.86 for official FX market, as liquidity dey jam for market like say na party wey no go end. (Omo, if money no dey, wetin we go blow trumpet for?!).

Now, if you don observe carefully, naira no dey play as it find way settle between N1,500 and N1,600 per dollar, making many paddy dem smile wide as dem dey sip their palm wine. Wetin we go do? Celebrate small small victories, abi?

But make we no too dey jubilate because on the flip side, FX outflows dey rise faster, climbing 14 percent q/q and 33 percent y/y to $13.8 billion, wey be the highest since Q2 2020. Analysts dey talk say na strong FX inflows for Q1 2025. (Bros, na real balancing act wey we dey see!)

Based on wetin the CBN talk, na $41.30 billion dey chill for our foreign currency reserves; e don dey waka small as e down from $41.49 billion wey e dash on September 3. Naija dey collect FX for Q1 wey don rise 4 percent quarters-on-quarters, and we dem dey call am carry trade influx. Who say wetin dey move, dey no dey feel am?

This gathering of naira glory no go complete without mention of new tax reform wey dey land for our doorstep. President Bola Tinubu don sign some laws wey go shake up how we dey pay tax for Naija. Na as Kamorudeen Yusuf, wey be di PA to di President talk am for his X handle, dem don put am for national gazette. Na serious restructuring wey fit help small businesses and make government no dey rely on oil only!

So, my padi, the moral of the story be say: Even when naira dey wahala, e fit still find way to shine. Na just make we keep our eyes open, sip our palm wine, and dey watch how e dey go!