Nigeria Nigeria’s Currency Strengthens to N1,540 as FX Market Stabilizes

The Naira appreciated to N1,540 per dollar in the parallel market, up from N1,565 last week, while the official rate also saw slight gains. Experts attribute the rise to CBN’s forex interventions and increased interbank transactions. Analysts suggest continued liquidity injections could further stabilize Nigeria’s currency in the coming weeks.

The Naira gained strength against the US dollar across both official and parallel foreign exchange markets on Monday, continuing its recent upward trend.

Currency traders in Abuja’s Wuse Zone 4 confirmed that the Naira was exchanged at N1,540 per dollar, an improvement from N1,565 last Friday. This marks a N20 appreciation in just a few days, signaling a positive shift for the local currency.

At the official market, the Naira also showed stability, closing at N1,508 per dollar, slightly up from the N1,508.6 recorded the previous trading session.

Experts attribute this improvement to increased dollar supply and the Central Bank of Nigeria’s (CBN) interventions, including stricter foreign exchange policies and interbank liquidity injections. The National President of the Bureau de Change Operators, Aminu Gwadebe, emphasized that recent policy adjustments have strengthened market confidence and enhanced forex accessibility.

Analysts predict that if the CBN continues its forex supply efforts and implements measures to curb speculative trading, the Naira could sustain its appreciation in the coming weeks. However, they caution that global economic factors and domestic inflationary pressures may still influence future exchange rate fluctuations.

As traders monitor these developments, there is cautious optimism that Nigeria’s forex market may be stabilizing after months of volatility. The coming days will determine whether this positive momentum can be maintained.