The Nigerian currency, the naira, strengthened slightly and traded at N1,375 per US dollar in the foreign exchange market.
Experts say the market is currently stable because of a mix of government policies and trading activities. The exchange rate has been moving within a narrow range, showing that there is less pressure on the naira for now.
One major level traders are watching is N1,350/$, which is seen as an important psychological point for the market.
A key reason behind the naira’s recent performance is the Central Bank of Nigeria (CBN)’s decision to maintain tight monetary policies instead of making major changes.
At its 305th Monetary Policy Committee (MPC) meeting, the CBN decided to keep the Monetary Policy Rate (MPR) at 26.5%.
Although inflation had reduced earlier in the year, it increased slightly again in April to 15.69%, mainly because of rising global energy costs and supply chain disruptions linked
This post was originally published on this site.
