By Jemimah Wellington, JKNewsMedia Correspondent
MODEST GAINS closed August for the Nigerian currency as the Naira advanced against the United States (US) dollar across both the official and parallel markets, supported by improved foreign exchange inflows and a stronger external reserves position.
Economic analysts linked the steady performance to a combination of increased remittances, higher offshore portfolio investments, and broader policy support from the Central Bank of Nigeria (CBN).
Figures released by the CBN showed the Naira firming in the Nigerian Foreign Exchange Market (NFEM), moving from N1,533/$ on Thursday to N1,531/$ on Friday.
At the parallel market, the currency traded at N1,545/$, an improvement over Thursday’s N1,552/$. Cumulatively, the Naira advanced by 0.14 percent on the NFEM during the month.
CBN, the apex bank explained that resilience in the market stemmed from stronger remittance inflows and a rise in offshore investor participation.
Also, Diaspora remittances were reported to have climbed by 200 percent to $600 million over the past two months, while offshore inflows rose from $1.5 billion in June to $1.7 billion by August.
External reserves further reflected the improved flows, with levels rising by $1.72 billion to $41.3 billion, providing the CBN with greater capacity to stabilise the Naira through market interventions where necessary. The bank stated that these developments provided the currency with added support during the review period.
Governor of the CBN, Yemi Cardoso, emphasised that stronger remittance systems and firmer exchange rates had encouraged Nigerians abroad to rely on official channels, reducing dependence on informal markets.
He noted that the surge in inflows from the diaspora was helping diversify the country’s foreign exchange earnings beyond oil receipts, thereby strengthening the overall foreign exchange portfolio.
The bank highlighted that its efforts to streamline remittance processes have been a key driver of the rising inflows, while measures aimed at encouraging investor participation continued to stabilise the wider currency market.
On the side, analysts monitoring the market pointed to relatively stable global conditions and renewed interest in Nigeria’s carry trade opportunities as supportive of the CBN’s policy stance.
They observed that stronger inflows and higher reserves are likely to extend support for the Naira into September, provided no major external shocks alter the present trajectory.
