The N8 gain represented a 0.59% appreciation, extending the currency’s recent recovery at the official window. The naira also strengthened against the dollar on the parallel market, where Bureau De Change (BDC) operators quoted the US currency at N1,379 on Thursday, down from N1,382 a day earlier.
Pound Holds Euro weakens, Canadian Dollar Rises
The pound traded at N1,836 on Thursday, unchanged from the previous day, while the euro declined to N1,535 from N1,538, representing a N3 reduction or a 0.20% appreciation in the naira’s value against the European currency.
However, the Canadian dollar rose to N985 from N983, an increase of N2 or 0.20%, indicating a slight weakening of the naira against the Canadian currency.
Foreign Reserves Rise to $55.26 billion
CBN data showed that foreign reserves rose to $55.264 billion as of October 27, from $55.255 billion on October 26. The $9 million increase represented a 0.02% rise over the period.
Foreign reserves are an important indicator of a country’s capacity to meet external obligations and support confidence in its currency. However, the naira’s performance also depends on dollar supply, demand from importers and other market participants, and overall liquidity in the foreign exchange market.
