The rebounding naira has finally broken through the ₦1,500/$ ceiling, trading at ₦1,497.46/$ on Monday. This marks its first dip below that level in over six months.
Data from the Central Bank of Nigeria showed a 0.27% gain from its previous close of ₦1,501.49/$.
The last time the naira traded below ₦1,500/$ was between February 24 and March 4, 2025.
The parallel market also showed strength. The naira appreciated by 0.33%, settling at ₦1,535/$.
Week-on-week, the official rate gained 0.98%, closing at ₦1,501.50/$, while the parallel market held firm.
Coronation Weekly Update revealed a ₦35.50 or 2.23% premium between both markets, showing the gap is narrowing.
Foreign exchange inflows hit $550.90 million last week, slightly lower than the previous $567.20 million.
Foreign Portfolio Investments led the charge, contributing $303.8 million or 55.15%.
Exporters followed with 17.61%, while non-bank corporates added 17.57%. Foreign Direct Investments made up just 3.39%.
CBN Interventions and Market Confidence
AIICO Capital said, “The FX market is expected to maintain its current stability, supported by the CBN’s continued policy adjustments and fiscal efforts to ensure adequate liquidity.”
Cowry Asset Management added, “We expect the naira to maintain its current trend of appreciation… However, renewed speculative activity could spark volatility.”
Some other experts predict the naira will trade within a narrow band in the short term. But they warn that the festive season towards December demand could pressure the currency again.
Nigeria’s external reserves rose to $41.69 billion last Friday, boosting confidence in the CBN’s stabilisation efforts.
Still, long-term recovery could depend more on structural reforms and attracting more durable foreign direct investments.
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