The Nigerian naira recorded significant appreciation against the US dollar in both the official and parallel foreign exchange markets on Monday, following a second consecutive monthly drop in the country's headline inflation.
According to exchange data from the Central Bank of Nigeria, the naira strengthened to N1,544.63 per dollar on Monday from N1,549.35 recorded on Friday last week, representing a gain of N4.72.
The parallel market (commonly known as the black market) also witnessed similar positive movement, with the naira firming up to trade between N1,595 and N1,600 per dollar, an improvement from the N1,606 exchange rate observed last week.
Inflation Decline Boosts Currency Performance
This currency appreciation coincides with Nigeria's headline inflation declining for the second consecutive month, reaching 22.97 percent in May. The improving inflation figures appear to have positively influenced investor sentiment and strengthened the naira's position in the forex markets.
Economic analysts suggest that the continued moderation in inflation rates could further support the naira's stability in the coming weeks, potentially attracting more foreign investment into the Nigerian economy.
The Central Bank of Nigeria has maintained its commitment to implementing policies aimed at stabilizing the foreign exchange market and curbing inflation, which has shown positive results in recent months.
Market observers will be closely monitoring upcoming economic indicators and policy decisions to gauge the sustainability of this positive trend in both inflation and currency performance.
Stay updated with the latest economic news by following BenriNews on our social media platforms:
