The Nigerian naira has demonstrated significant strength, closing at N1,518/$ on the official market, marking its highest level in four months. This achievement is the first time it has traded below N1520/$ since mid-March 2025, reflecting a positive shift in market sentiment.

Data from the Central Bank of Nigeria (CBN) indicated a 0.74% gain for the naira, recovering from a previous week’s close of N1,530.26/$. Analysts from Anchoria Limited predict that the naira will remain stable, trading within the range of N1,515–N1,535/$ this week, driven by enhanced FX liquidity and proactive CBN interventions. The bank’s recent actions, including a $50 million sale and a successful OMO auction that attracted significant investor interest, have helped alleviate demand pressures.

In contrast, the parallel market saw the naira depreciate, closing at approximately N1,540/$. The widening gap between demand and supply for the US dollar remains a core challenge, even as the CBN continues its efforts to stabilize the currency.

Despite these fluctuations, analysts express optimism about the naira’s outlook, emphasizing the importance of ongoing CBN interventions and favorable oil export revenues. Overall, the recent performance of the naira signals a potential path toward greater stability in the foreign exchange market.