By Atoyebi Nike
The Nigerian naira appreciated against the US dollar on Monday in both the official and parallel markets, continuing its recent upward momentum.
Data from the Central Bank of Nigeria (CBN) showed that the naira gained ₦5.16 to trade at ₦1,452.79 per dollar, a 0.35 per cent increase from Friday’s ₦1,457.95/$ rate.
The Association of Bureau De Change Operators of Nigeria (ABCON) praised the sustained improvement, noting that the naira had strengthened by ₦10 in the parallel market over the past month.
ABCON President, Dr. Aminu Gwadabe, attributed the gains to multiple factors, including Nigeria’s removal from the Financial Action Task Force’s (FATF) “grey list,” improved oil revenues, rising foreign reserves, and increased diaspora remittances.
Meanwhile, the US dollar weakened globally ahead of a widely expected interest rate cut by the Federal Reserve. The dollar index slipped 0.19 per cent to 98.58, as investors anticipate a 0.25 percentage point rate reduction at the Fed’s October meeting.
Analysts say dovish signals from Fed Chair Jerome Powell could further pressure the dollar, potentially boosting emerging market currencies like the naira.
