Naira strengthens to 1,351/$ at official market as liquidity and foreign inflows support the currency, signalling growing stability
The Nigerian naira maintained its appreciation streak at the official Foreign Exchange Market, closing at 1,351.02 per dollar on Tuesday, supported by improved liquidity and steady foreign inflows.
The upward trend, which began at the start of February, reflects renewed confidence in the regulated segment of Nigeria’s foreign exchange market.
At the official window, the naira opened the week on a positive note, gaining 86 basis points, or N11.80, against the U.S. dollar.
Analysts attributed the strength to strong foreign exchange supply from Foreign Portfolio Investors and domestic market participants.
During Monday’s session, the currency traded between 1,360.00/$ and 1,352.50/$, before settling at 1,354.26/$. On a weekly basis, the naira recorded a gain of about N20.36, closing at 1,366.19/$ last week.
Overall, the currency has appreciated approximately 2.8 per cent relative to its February 2 position at the official window.
The positive momentum extended to the parallel market, with CardinalStone reporting a 0.21 per cent gain, closing at 1,447.00/$.
Cowry Assets Management noted stability at 1,426/$, indicating calm conditions in the informal segment.
Market analysts remain cautiously optimistic.
AIICO Capital projected that the naira would sustain its positive trajectory this week, citing steady inflows and continued reserve accretion as key factors.
Afrinvest echoed the outlook, highlighting that the currency is likely to maintain its current path barring any adverse shocks.
The sustained gains underscore improving liquidity conditions and growing stability in both official and parallel foreign exchange markets, signalling renewed investor confidence in Nigeria’s local currency.
