Naira strengthens further as dollar liquidity rises by 92.92%

The official foreign exchange (FX) market recorded a significant increase in dollar liquidity, which helped to strengthen the naira further on Tuesday.

Nigerian Naira gained 3.71 percent as the dollar was quoted at N806.73 on Tuesday compared to N837.77 quoted on Monday, at Autonomous Foreign Exchange Market (NAFEM), data from the FMDQ indicated.

Dollar supply increased by 92.92 percent as the daily FX market turnover rose to $142.63 million on Tuesday from $73.93 million recorded on Monday.

Willing buyers and willing sellers quoted the dollar at a bid rate of N1,150, weaker than N1,021 quoted on Monday on the spot trading. The spot segment recorded a lower bid rate of N757 per dollar, weaker than N701/$1 on Monday.

On Monday, Nigeria's currency strengthened by 9.64 percent despite a decline in dollar liquidity. The naira appreciation followed a moderation in demand for dollars at the official FX market.