Nigerian Naira Gains Against US Dollar Amid Oil Sales and Central Bank Measures
The Nigerian naira strengthened against the US dollar in Wednesday's trading session, reaching an intraday high of N1536.50 compared to N1543 the previous day. This uptick follows a rise in Nigeria's external reserves to $40.292 billion, bolstered by increased oil production.
Two key drivers underpin the naira's resilience: the mandatory settlement of oil transactions in local currency and the reintroduction of naira-denominated debit cards for non-residents. Nigeria's central bank has taken decisive steps to reduce dollar dependency, with refiners now accepting naira for energy trades. The relaunch of naira debit cards after a three-year pause further solidifies the currency's position, eliminating conversion fees for international transactions.
