Nigerian naira remained unchanged at the parallel market on Tuesday

The Nigerian naira remained unchanged at the parallel market on Tuesday, trading at N1,535 to the US dollar, following the Central Bank of Nigeria's (CBN) decision to keep the Monetary Policy Rate (MPR) unchanged for the seventh consecutive time. The CBN's stance reflects its commitment to tight monetary policy in order to control inflation and stabilize the economy.

Governor Olayemi Cardoso noted that the perception of the Naira is improving due to CBN reforms and better macroeconomic conditions. He cited the increased use of the local currency for transactions and the narrowing gap between the official and parallel exchange rates as evidence of successful policy implementation. The CBN has introduced market-determined exchange rates and stricter monetary policies to encourage the use of the Naira.

Meanwhile, the US dollar index traded near a two-week low as investor risk appetite improved following the US-Japan trade deal. The index, which tracks the dollar against six major currencies, had fallen significantly but managed to recover slightly. President Trump's decision to reduce the planned tariffs on Japanese goods from 25% to 15% and Japan's commitment to invest $550 billion in the US economy have contributed to this improved market sentiment. Despite this, the dollar has lost over 6% of its value since early April due to ongoing trade tensions.