Naira to dollar
The Nigerian naira has reached a four-month high against the US dollar, trading at N1,518/$. This marks a significant appreciation of 0.74% and is the strongest performance since March 14, 2025, when it traded at N1,517.93/$. The naira’s recovery can be attributed to improved foreign exchange liquidity, courtesy of the Central Bank of Nigeria’s (CBN) interventions.
The CBN has been actively intervening in the foreign exchange market, selling $50 million last week and conducting a successful Open Market Operation (OMO) auction. The OMO auction attracted robust foreign investor interest, which has helped to boost market confidence and ease demand pressures. The CBN’s actions have been widely welcomed by market participants, who believe that the apex bank’s interventions have helped to stabilize the naira.
The naira’s appreciation is also driven by increased investor confidence. Both local and international observers agree that the naira is trading close to its fair value, reflecting improved market sentiment. The currency’s recovery has been steady and consistent, with market participants citing the CBN’s commitment to maintaining stability in the foreign exchange market.
Steady oil export revenues have also contributed to the naira’s appreciation. Nigeria’s oil exports remain a key driver of foreign exchange inflows, supporting the naira’s recovery. The country’s oil production has been relatively stable, and the recent increase in oil prices has helped to boost revenue.
Market analysts forecast a stable trading range of N1,515-N1,535/$ for the week, driven by sustained CBN interventions and improved foreign exchange liquidity. The parallel market rate appreciated to N1,540/$, reflecting relative calm despite fluctuating market dynamics. Experts believe the naira’s recovery is built on improved market fundamentals, but caution that global uncertainties and oil price fluctuations could impact the currency’s trajectory.
The naira’s recent performance has been a welcome development for investors and businesses, who have been grappling with the challenges of currency volatility. The currency’s stability is expected to boost investor confidence and support economic growth. However, market participants remain cautious, citing the need for continued CBN intervention to maintain stability in the foreign exchange market .
