Naira Strengthens 2% as NFEM Records $2.63bn Turnover in Five Sessions

The Nigerian currency, the naira, strengthened by approximately 2% against the US dollar between August 24 and September 4, according to data from the Nigerian Foreign Exchange Market (NFEM). The market recorded a turnover of $2.63 billion over the five trading sessions, indicating a strong performance. The naira closed at N1,322.50/$ on September 4, up from N1,349.99/$ on August 24, reflecting an appreciation of N27.49 or 2.04%.

This was despite the market processing $2.63 billion in total transactions from August 31 to September 4, up from $3.19 billion in the previous four sessions. The stronger exchange rate was evident in the market's weighted average rate, which averaged N1,325.19/$ during the five sessions, compared to N1,341.61/$ during the August 24–28 period.

The naira's gains were consistent throughout the week, moving from N1,335.50/$ at the start of August 31 to N1,322.50/$ by September 4. The improvement was fueled by sustained market activity, with 1,580 deals recorded in the latest period, higher than the 1,554 deals in the preceding four sessions. Interbank transactions also remained robust, accounting for $605.68 million of the turnover during the latest five-day period.

This performance adds to the growing evidence of improved conditions in the official foreign exchange market, as the naira continues to strengthen amidst substantial dollar transactions.