Nigeria Naira Soars to 8-Month High of 1,120/$ as Dollar Supply Surges

The Nigerian Naira has surged to an eight-month high of 1,120 per dollar on the black market, propelled by recent foreign exchange reforms implemented by the Central Bank of Nigeria (CBN). This marks a significant gain of 62.95 percent over the dollar compared to February 2024 levels.

Traders attribute the rise to reduced demand and increased dollar liquidity in the market during the holiday period. Despite declining external reserves, the official FX market also witnessed a strengthening of the Naira, reaching 1,230.61 per dollar on Monday.

The CBN's interventions and policy changes, including the removal of market segmentation, restriction on buying and selling spreads, and imposition of limits on banks' foreign currency assets, have contributed to increased stability and reduced volatility in the FX market, according to analysts.

With total inflows into the Nigerian Autonomous Foreign Exchange Market (NAFEM) rising and ongoing reforms, experts anticipate continued stability in the FX market.