The Nigerian naira ended last week on a strong note, trading at ₦1,514.86 to the US dollar at the official window, its best performance in nearly five months, according to data from the Central Bank of Nigeria (CBN). This marks a significant improvement from the ₦1,526.09/$ rate at the start of September, signalling a positive turn for the local currency.
This is the first time since March 6, when the naira closed at ₦1,512.30/$, that the currency has gained such ground in the official market. The parallel market also mirrored the uptrend, with the naira appreciating slightly to around ₦1,538/$, reflecting renewed confidence across forex channels.
Analysts attribute the currency’s resilience to improved dollar inflows, increased market liquidity, and targeted interventions by the CBN. The apex bank reportedly injected about $15 billion into the market, while offshore supply and opportunistic buying further boosted sentiment. Experts at AIICO Capital noted that these factors helped keep the market stable, with trading largely confined within a narrow band throughout the week.
By the weekend, trading activity saw the naira fluctuate between ₦1,508/$ and ₦1,529/$ before settling at its weekly close of ₦1,514.86/$. Financial analysts project that the naira is likely to remain relatively stable in the coming week, supported by steady inflows, growing investor confidence, and modest improvements in Nigeria’s external reserves. Cowry Asset Management reported that reserves climbed by 0.10 per cent to $41.31 billion, providing an added cushion against external shocks.
Looking ahead, market watchers believe the outlook for the naira will be shaped by global oil prices and the upcoming OPEC+ decisions on production levels. While speculative demand may pose challenges, stronger foreign inflows and the CBN’s capacity to intervene are expected to help maintain exchange rate stability. For many Nigerians, the recent gains in the naira bring a glimmer of hope for easing import costs and inflationary pressures.
Source: Punch