The Nigerian naira started the new trading week on a stable note, maintaining its recent gains against the U.S. dollar as confidence in the foreign exchange market continued to improve.
According to data from the Nigerian Foreign Exchange Market (NFEM), the naira traded at ₦1,379.22/$1 at the official window, reflecting continued stability after weeks of relatively controlled exchange rate movements. Market participants attributed the steady performance to improved dollar liquidity and sustained interventions by monetary authorities.
The parallel market also remained largely stable, with the dollar exchanging between ₦1,390 and ₦1,405, leaving only a narrow gap between the official and unofficial markets. Currency traders say the reduced spread has eased speculative activity and improved confidence among businesses and importers.
Analysts note that the Central Bank of Nigeria’s foreign exchange reforms, combined with increased inflows from oil exports and foreign portfolio investors, have helped support the local currency in recent months. The relative stability has also provided some relief to manufacturers and import-dependent businesses that had struggled with volatile exchange rates.
Despite the positive outlook, economists caution that the naira remains vulnerable to external shocks, particularly fluctuations in global oil prices and foreign capital flows. They argue that sustaining exchange rate stability will require continued growth in export earnings, improved foreign reserves, and consistent economic reforms.
Businesses are also watching closely to see whether the stronger naira will gradually reduce import costs and ease inflationary pressures, especially on food, fuel, and industrial inputs.
