The naira appreciated against the US dollar on Wednesday, strengthening to N1,375 per dollar in the parallel market from N1,383 recorded on Tuesday.
Similarly, the local currency gained ground in the Nigerian Foreign Exchange Market (NFEM), appreciating to N1,328 per dollar.
Data from the Central Bank of Nigeria (CBN) showed that the indicative exchange rate stood at N1,328 per dollar, compared with N1,331 on Tuesday, representing a N3 appreciation.
Consequently, the gap between the parallel and official markets narrowed to N47 per dollar from N52 recorded on Tuesday.
Trading activity in the NFEM also increased, with interbank turnover rising by 181.5 per cent to $279.2 million from $99.2 million on Tuesday.
Meanwhile, the country’s external reserves continued their upward trajectory, reaching $54.674 billion as of Friday, September 17.
The rise in external reserves and recent movements in the foreign exchange market have provided a more supportive environment for the naira.
Market expectations remain focused on whether the currency can sustain its recent gains in both the parallel and official markets in the coming weeks.
