KEY POINTS
- The Naira appreciated further at the official market on Monday, closing at N1,357.76 against the U.S. dollar.
- Daily Gains: The Nigerian currency gained N8.46 during Monday’s trading session, representing a 0.6 per cent increase from Friday’s close of N1,366.23.
- Weekly Performance: This development marks a steady one week appreciation for the Naira, driven by sustained market activity and improved foreign exchange supply.
- CBN Data: The official rates, published on the Central Bank of Nigeria (CBN) website, confirm a narrowing gap between different market segments as liquidity improves.
MAIN STORY
The Nigerian Naira continued its positive trajectory on Monday, gaining ground against the U.S. dollar at the official foreign exchange market. According to the latest data from the Central Bank of Nigeria (CBN), the local currency closed at N1,357.76/$1, up from the N1,366.23 recorded at the end of Friday’s trading.
This 0.6 per cent appreciation is the latest in a series of gains that have seen the Naira stabilize over the past seven days. Market analysts attribute this steady performance to a combination of increased foreign exchange inflows and a more transparent price discovery mechanism at the official window.
The sustained market activity suggests that the CBN’s recent policy tweaks—aimed at boosting dollar liquidity and curbing speculative demand—are beginning to yield consistent results. By maintaining a steady supply of forex to authorized dealers, the apex bank has managed to reduce the extreme volatility that characterized the market in early 2025.
While the appreciation of N8.46 in a single session may seem modest, the cumulative effect of a week-long gain is providing much-needed relief to importers and manufacturers who rely on the official window for their business operations.
WHAT’S NEXT
- Mid-Week Trading: Investors will be watching Tuesday and Wednesday’s sessions to see if the Naira can break below the N1,350 psychological support level.
- CBN Intervention: The market expects the CBN to maintain its current level of forex interventions to ensure the gains are not erased by month-end corporate demand.
- Inflation Impact: If the Naira continues this steady appreciation throughout March, it could help dampen the “imported inflation” pressures noted in the latest NBS reports.
BOTTOM LINE
The Bottom Line is that the Naira is finding a new stability zone near the N1,350 mark. As long as the CBN maintains the current “sustained market activity” and dollar supply, the currency is well-positioned to continue its gradual recovery, providing a more predictable environment for the Nigerian economy in 2026.
, the local currency closed at N1,357.76/$1, up from the N1,366.23 recorded at the end of Friday's trading.){kind=link}