The Nigerian naira stayed relatively flat in the unofficial market, trading between N1,600 and N1,605 to the dollar, even as the greenback began to rebound globally. While the dollar index had recently dipped to a three-year low, renewed global confidence and commentary from U.S. officials helped it regain ground. Despite external pressures—including weakened oil prices, global trade disputes, and Nigeria’s widening trade deficit—the naira has shown some resilience, though underlying concerns persist.
At a forum in New York, Central Bank of Nigeria (CBN) Governor Yemi Cardoso reaffirmed the bank’s commitment to transparency and market-driven policy adjustments. He emphasized the importance of rebuilding public trust through a credible monetary framework and ruled out any reversal of the bank’s reform trajectory. Cardoso also noted that the country’s recent Fitch Ratings upgrade, shifting its outlook from negative to stable, could help improve access to foreign capital and bolster investor sentiment.
Meanwhile, the dollar saw renewed strength after U.S. Treasury Secretary Scott Bessent hinted at a possible thaw in U.S.–China trade tensions. His optimistic tone contrasted with the Trump administration’s prior rhetoric, suggesting a shift away from economic decoupling. President Trump added to the mix by confirming he would not dismiss Federal Reserve Chair Jerome Powell, despite earlier threats and criticisms, marking a softer stance that briefly calmed markets.
However, the dollar’s rally was tempered by growing concerns over the Fed’s independence. Trump’s past threats and public insults directed at Powell raised investor anxiety, especially given the Fed’s central role in global financial stability. Although U.S. Treasuries remain a key safe-haven asset, a wave of foreign sell-offs and questions about political interference have sparked market volatility. In the event of a global downturn, analysts still expect the dollar to assert its dominance, buoyed by its liquidity and the depth of U.S. financial markets.
Source: Nariametrics