The Centre for Promotion of Private Enterprise (CPPE) has explained why the Naira has recently gained significant value against the US dollar. According to Muda Yusuf, the Director of CPPE, the improvement in Nigeria’s external reserves and interventions by the Central Bank of Nigeria (CBN) are the main reasons for this positive trend.
The Naira strengthened by ₦127 in the past week, closing at ₦1,535 per dollar on Friday, compared to ₦1,660 at the beginning of the week. CPPE attributed this development to an increase in Nigeria’s external reserves, which have risen to over $40 billion in recent days. This has given the CBN greater capacity to intervene in the foreign exchange market and stabilize the currency.
Yusuf noted that the introduction of the Electronic Foreign Exchange Matching System (EFEMS) by the CBN has also played a key role in stabilizing the Naira. He highlighted that the currency’s performance has been relatively stable over the past five months, with recent reforms in the foreign exchange market encouraging more foreign exchange inflows, particularly from international money transfer operators.
Economic experts have also linked the Naira’s appreciation to Nigeria’s recent success in raising $2.2 billion through Eurobonds in the international market. These developments have boosted confidence in the Nigerian economy and contributed to the strengthening of the local currency.
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