SAT JAN 31 2026-theGBJournal| The Nigerian naira gained strongly this week against the US dollar which also firmed against a basket of currencies including the yen and the euro, after the U.S President Donald Trump named former Federal Reserve Governor Kevin Warsh to be the next Fed Chair.
The currency rose 2.4% w/w to N1,390.50/USD, supported by the robust inflows from offshore players seeking to participate at the OMO and FGN bond PMA.
In the forwards market, the naira rates also appreciated across the 1-month (+2.4% to N1,413.23/US$), 3-month (+2.5% to N1,453.70/US$), 6-month (+2.2% to N1,516.99/USD) and 1-year (+3.5% to N1,612.52/US$) contracts.
Also, the gross FX reserves increased this week by USD75.66 million w/w to US$46.11 billion (January 28).
The naira is expected to remain broadly stable in the near term, supported by a weaker dollar and a favourable external position characterised by a sustained current account surplus and strong foreign exchange reserves.
In addition, continued investor confidence and elevated naira yields should sustain capital inflows, helping to anchor the exchange rate.
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