The Nigerian naira extended its recovery streak on Monday, firming to N1501 per US dollar at the official exchange window, amid reduced demand pressure for foreign currency.
Figures from the Central Bank of Nigeria (CBN) showed that the dollar was settled at N1500.92, strengthening from N1506.09 in the previous trading session. Intraday activity also saw the naira touch N1498 per dollar, reflecting sufficient liquidity and steady interventions in the FX market.
This marks nearly N37 gain in 10 days, highlighting growing market optimism about the local currency’s outlook. Analysts say the trend underscores increasing confidence in Nigeria’s economic management and consistent CBN interventions.
Market experts caution that hoarding dollars has become riskier, especially with Nigeria’s external reserves rising to $41.596 billion as of Wednesday.
“It will take time before authorities utilize these reserves, but the determination to stabilise the naira is clear,” noted a senior economist at LSintelligence Associates in a chat with MarketForces Africa.
Reserves data from the apex bank showed that Nigeria’s gross external reserves advanced to $41.6 billion on Tuesday, buoyed by steady inflows from oil receipts, remittances, and other financial sources.
With sustained policy measures and improved liquidity, analysts project further naira resilience in the near term, while warning that speculative dollar holdings could expose investors to losses.
