Nigeria’s naira started the new month and week on a positive trajectory, appreciating by 0.36 per cent, or N5.48, to close at N1,526.09 per dollar on Monday, up from N1,531.57 at the previous trading session.
This marks the currency’s strongest rate in approximately six weeks on the official Foreign Exchange Market, according to data from the Central Bank of Nigeria (CBN).
Don’t Miss This: U.S. to Impose New Steel Import Taxes on South Africa and Nine Other Countries
The naira also showed gains in the parallel market, where Cardinal Stone Research reported it rose 1.22 per cent to N1,527.33/$, reducing speculative pressures.
Analysts say this performance aligns with earlier projections for the week.
Cowry Assets Management, in its weekly report, noted that the naira is expected to remain largely stable at the official window, supported by CBN interventions and modest foreign exchange inflows, although rising demand and a strong U.S. dollar may limit further gains.
AIICO Capital similarly projected that the naira would continue trading within the 1,525–1,538/$ range.
PwC’s Economic Outlook also forecasts broad stability for the naira throughout 2025, underpinned by ongoing CBN reforms and improved portfolio inflows.
On a week-on-week basis, the naira had strengthened by 0.23 per cent as of Friday, closing at N1,531.57/$.
Month-on-month, it appreciated by 0.13 per cent from N1,533.55/$ at the end of July, marking a recovery from the negative performance recorded at the close of July.
External reserves have also seen steady growth, rising from $41.00 billion in August to $41.27 billion by Friday, reflecting improved market liquidity and sustained dollar inflows. Experts attribute the naira’s recent gains to these factors.
Read Also: Nigeria, Brazil Explore Mobile Money Expansion and Financial Inclusion
Meanwhile, the U.S. dollar fell to a five-week low on Monday as investors awaited upcoming labor market data, which could influence expectations regarding the Federal Reserve’s monetary policy.
Analysts suggest that signs of a slowing U.S. economy justify a weaker dollar and anticipate that softening labor market indicators may reinforce this trend.
Image Credit: Nairametrics
