External reserves hit $41bn, drives Naira appreciation to N1,545/$

Nigeria’s external reserves have risen to $41.046 billion, the highest in four years, driving further appreciation of the Naira in the parallel market.

Data from the Central Bank of Nigeria, CBN showed that the external reserves rose steadily to $41.046 billion from $37.21 billion on June 30. This translates to $3.836 billion or 10.3 per cent increase in reserves in two months.

Reflecting the impact of this upsurge in reserves, the Naira yesterday appreciated for the fourth consecutive day to N1,545 per dollar in the parallel market from N1,550 per dollar on Wednesday.

Likewise, the Naira appreciated to N1,535.1 per dollar in the Nigerian Foreign Exchange Market (NFEM).

Data published by the Central Bank of Nigeria, CBN, showed that the exchange rate for the naira fell slightly to N1,535.1 per dollar from N1,537.99 per dollar on Wednesday, indicating N2.89 appreciation for the naira.

Consequently, the margin between the parallel market and NFEM rate narrowed to N9.9 per dollar from N17.01 per dollar on Wednesday.