The naira stayed relatively stable in Nigeria’s unofficial market, trading between N1,600 and N1,605 per dollar, even as the U.S. dollar gained strength after a recent slump. Global concerns like trade tensions, dropping oil prices, and Nigeria’s widening trade deficit continue to pressure the local currency. Despite that, market activity around the naira remained relatively calm, with traders showing more caution than alarm.
Nigeria’s Central Bank Governor, Yemi Cardoso, addressed investors in New York, reaffirming the CBN’s dedication to transparency and reforms aimed at restoring trust. He made it clear that the bank has no intention of reversing course. Cardoso highlighted a recent Fitch Ratings upgrade, shifting Nigeria’s outlook from negative to stable, as a sign of improved credibility that could attract more foreign investment and better borrowing terms.
Globally, the dollar picked up strength mid-week following remarks from U.S. Treasury Secretary Scott Bessent, who hinted at a potential easing in the U.S.–China trade dispute. President Trump also softened his tone regarding Federal Reserve Chair Jerome Powell, stating he had “no intention” of removing him—a shift from earlier, more aggressive comments. These developments helped push the dollar index up to 99 after hitting a low of 97.8.
Still, market jitters remain due to Trump’s ongoing criticism of the Fed, raising alarms over its independence. Investors have been pulling back from U.S. dollar assets, wary of political overreach and its effect on asset values. U.S. Treasuries have underperformed compared to other developed bond markets but are still viewed as a safe haven. In the event of a global slowdown, the dollar is expected to regain further strength due to its scale, liquidity, and stability.
Source: Nariametrics