The naira appreciated against the US dollar at the Nigerian Foreign Exchange Market (NFEM) on Monday, closing at ₦1,354/US$, as increased offshore and domestic inflows boosted foreign exchange liquidity.
The local currency extended its positive run despite the absence of direct FX interventions, supported by strong market participation and elevated transaction volumes at the official window.
Data from the Central Bank of Nigeria (CBN) showed that the naira gained 86 basis points, or ₦11.80, against the dollar, reflecting sustained supply from Foreign Portfolio Investors (FPIs) and local market participants.
During the trading session, the naira exchanged hands within a low-high band of ₦1,352.50/US$ to ₦1,360.00/US$, according to official market data.
Analysts said the currency’s performance remains driven by underlying demand-supply dynamics and an improving external reserves position, which continues to provide a buffer for the foreign exchange market.
Nigeria’s foreign exchange reserves were last reported at $46.91 billion, following steady accretion from multiple sources, including hydrocarbon exports and diaspora remittances.
Market watchers noted that reserves have maintained an upward trajectory since the start of the year, with expectations that current levels will remain stable in the near term. This outlook is underpinned by stronger foreign inflows, improved FPI participation, and consistent FX management by the CBN.
In global commodity markets, oil prices climbed more than 1 per cent on Monday after the US Department of Transportation issued an advisory urging US-flagged vessels to keep maximum distance from Iranian territory while transiting the Strait of Hormuz and the Gulf of Oman.
Brent crude rose by 1.57 per cent, gaining $1.07 to trade around $69.12 per barrel, while US West Texas Intermediate (WTI) advanced 1.42 per cent to approximately $64.45 per barrel.
Gold prices also recorded gains as investors positioned ahead of key US economic data releases expected later in the week. Spot gold slipped 43 basis points to $5,058.01 per ounce, while US gold futures declined 85 basis points to trade near $5,100.71 per ounce.
Analysts expect oil prices to remain sensitive to geopolitical developments, while broader financial markets are likely to stay cautious as investors assess upcoming macroeconomic signals.
 on Monday, closing at ₦1,354/US$, as increased offshore and domestic inflows boosted foreign exchange liquidity.){kind=link}