Naira gains, despite consecutive fall in foreign reserves

The Nigerian naira strengthened slightly at the parallel market, despite fall in the country’s foreign reserves.

On Friday, the naira appreciated by one point against the dollar, moving from 391 to 390 against the greenback.

The British pound lost some ground to the naira to trade at N495, while the euro exchanged for N420.

This is happening despite a three-day fall in the country’s foreign reserves, the first in many weeks.

As at Thursday evening, the country’s foreign reserves stood at $30,928,485,613, falling from $30,988,403,724 on May 5, 2017.

The Central Bank of Nigeria has implemented some policy actions of late, with the sole aim of stabilising the foreign exchange market.

The apex bank has maintained a continuous intervention at the forex market, pumping billions of dollars into the market.

The efforts of the bank is said to have been yielding some results, with a dramatic increase in foreign portfolio investment.

The Nigerian Stock Exchange (NSE) has gained nearly a trillion naira since markets opened on Monday.

Traders say investors are optimistic about the Nigerian market, due to the new policies being implemented by the apex Bank.