The Nigerian Naira closed the week stronger against the U.S. dollar, recording a modest appreciation at the official foreign exchange market on Friday. According to figures released by the Central Bank of Nigeria (CBN), the local currency traded at N1,534.72/$, gaining 4.52 kobo from the previous day’s closing rate.
This development represents a 0.05 per cent appreciation from Thursday’s exchange rate of N1,534.79/$, signalling cautious optimism among traders and financial analysts tracking Nigeria’s forex market performance.
Despite ending the week on a positive note, the Naira experienced slight fluctuations during the week.
On Monday, the currency opened weaker, declining by 20 kobo.
By Tuesday, it recovered slightly, trading at N1,535.24/$.
On Wednesday, the Naira dipped marginally to N1,535.62/$, before beginning its upward trajectory.
The positive turnaround continued into Thursday and Friday, closing at N1,534.72/$ at the official market.
Forex analysts attribute these minor movements to market corrections and investor reactions to evolving monetary policy signals from the CBN.
The CBN’s ongoing foreign exchange reforms, including increased dollar supply to commercial banks and tightened monetary policy to curb inflation, have been key drivers of the recent stability in the market.
Financial experts suggest that the local currency’s gradual appreciation reflects the positive impact of these interventions, although Nigeria’s forex market remains sensitive to global oil price volatility and foreign investor sentiment.
In a note to clients, Lagos-based economist Bamidele Akinyemi stated that, “The Naira’s slight gains this week show that CBN’s forex liquidity interventions are yielding results. However, sustainable appreciation will depend on increased foreign direct investment and a stronger non-oil export base.”
While the official rate closed at N1,534.72/$, traders in the parallel market reported varying rates between N1,540/$ and N1,545/$, maintaining a slight premium over the official window.
A stronger Naira, even by small margins, is expected to help ease imported inflation, particularly for essential goods. However, manufacturers continue to lament the high cost of accessing foreign exchange for raw materials and machinery.
According to Johnson Eke, a forex trader in Abuja, “The market is still tight. Many importers are not getting their full dollar bids, so some pressure remains in the black market.”
Market watchers expect cautious optimism going into next week’s trading session. The CBN is likely to maintain its current monetary stance while continuing efforts to attract diaspora remittances and foreign portfolio inflows.
However, analysts warn that persistent global uncertainties, including U.S. interest rate hikes and fluctuating oil prices, could exert renewed pressure on the Naira in the medium term.