The Nigerian naira recorded a mild appreciation of 0.2% against the US dollar on Monday, supported by fresh rounds of foreign exchange injections aimed at stabilising the market and boosting liquidity.
The currency, which had weakened at the official window throughout the previous week despite several interventions, regained some ground as the Central Bank of Nigeria (CBN) released $250 million to authorised dealers and commercial banks. The move sought to ease rising demand pressures stemming from increased foreign payment obligations by corporates.
According to updated CBN data, the domestic currency improved by 0.20% to close at N1,453.84/$, reversing part of its earlier weakness. Market analysts at Cowry Asset Management noted that the marginal recovery underscores persistent structural pressures within Nigeria’s FX ecosystem.
During the session, the spot FX rate touched an intraday high of N1,462.50 — slightly lower than the previous trading day’s peak of N1,462. Data also showed that the naira reached an intraday low of N1,451 before averaging N1,453 by market close.
Analysts say market dynamics remain driven more by limited FX supply than by changes in sentiment, suggesting that while interventions may temporarily ease volatility, sustained improvement depends on stronger and more consistent inflows.
Meanwhile, the parallel market also saw mild appreciation, with the naira firming to N1,455/$ from N1,460/$ amid year-end inflows ahead of the festive season. Experts anticipate relative stability at the official window, although intermittent fluctuations are likely as FX demand remains elevated.
Nigeria’s external reserves climbed to $44.261 billion, equivalent to more than 10 months of import cover. Analysts believe that the gradual build-up in reserves and sustained intervention efforts could help moderate volatility, even as demand-supply gaps continue to pressure the market.
