The Naira made a strong comeback on Monday, closing at ₦1,518/$ at the Nigerian Foreign Exchange Market — its best level since March 14.
This 0.74% gain from Friday’s ₦1,530.26/$ signals rising market confidence in Nigeria’s currency.
According to CBN data, this is the first time the naira has traded below ₦1,520/$ in four months. On March 14, it closed at ₦1,517.93/$, marking a sharp rebound from the previous day’s ₦1,547.81/$.
One financial analyst projects that the naira will likely trade between ₦1,515 and ₦1,535/$ this week based on strong FX liquidity, last week’s $50 million CBN intervention, and a successful OMO auction that pulled in foreign interest.
“These actions have helped ease demand pressures and boost market confidence, keeping volatility low,” the firm stated.
Last week’s OMO auction saw the CBN offer ₦600bn. The 272-day bill recorded no sale, but the 363-day attracted ₦2.17tn in subscriptions, with ₦1.25tn allotted at 21.99%.
Naira Recovers at Parallel Market Too
The naira also appreciated at the parallel market, closing at ₦1,540/$, up from ₦1,545/$.
Another analyst said the current momentum is being driven by “continued CBN intervention, FX reforms gaining traction, and steady oil export revenues.”
Last week’s slip in value, the firm noted, came from rising dollar demand and FX supply constraints. Still, the CBN’s actions are holding the line.
“The rising gap between dollar demand and supply remains a core challenge,” he said, “though recent reforms suggest a path toward greater currency stability.”
Monthly CBN FX sales averaged $786.58m in H1 2025 — far below pre-COVID levels of $2.30bn.
Several analysts agree that the naira is now trading close to its fair value.
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