The naira maintained its upward momentum on Monday, strengthening by 0.29% to close at ₦1,476.35 per dollar at the official foreign exchange market.
The local currency’s rally was supported by subdued dollar demand alongside inflows from oil companies and exporters, boosting overall FX liquidity.
Market intelligence gathered by MarketForces Africa indicated that some investors holding short-term structured dollar assets have begun unwinding their positions to avoid portfolio erosion as the naira gains.
According to analysts, risk-averse investors who previously locked funds in dollar instruments are now selling down, anticipating sustained exchange rate stability and further improvements in FX supply.
“Most of the dollar funds meant for short-term plays have been wound down,” a source at a leading investment bank disclosed.
At the official window, the naira traded between ₦1,475 and ₦1,486.50 per dollar, with traders highlighting improved confidence on the back of stronger external reserves, which rose to $42.256 billion on Friday from $42.225 billion the day before.
In the parallel market, the naira also firmed, appreciating 0.83% to ₦1,499 per dollar, underscoring broad-based demand for the local currency across segments.
