The naira began the week on a stronger footing, appreciating to N1,465.29 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Monday, following renewed intervention by the Central Bank of Nigeria (CBN).
The local currency gained N10 against the US dollar after closing last week at N1,475/$, marking a 0.69% appreciation, according to data released by the CBN.
Analysts attributed the development to improved market confidence and fresh foreign exchange inflows, despite a 33% week-on-week decline in total FX volume, which fell to $1.1 billion, as reported by Coronation Merchant Bank Limited.
The CBN was said to have sold $70 million to commercial banks on Monday as part of its ongoing interventions aimed at stabilising the market and ensuring adequate dollar liquidity.
At the intraday trading session, the naira recorded a high of N1,470/$, representing a notable recovery from Friday’s N1,482/$ close.
“The decline in dollar supply explains part of the recent volatility, but the outlook for the spot rate remains positive given the CBN’s steady interventions,” analysts at MarketForces Africa noted.
Meanwhile, Nigeria’s external reserves surged to $42.696 billion last week, reflecting improved foreign inflows and expectations of further growth in the coming days.
Despite fluctuations in global oil prices, market observers said the rise in reserves would strengthen the CBN’s capacity to sustain its currency management efforts and ensure exchange rate stability.
The naira’s recent performance follows a series of policy measures by the CBN to unify exchange rates and deepen liquidity in the official market, as part of ongoing reforms under the current monetary framework.
