The Nigerian naira appreciated to ₦1,531.57 per dollar on Friday at the Nigerian Foreign Exchange Market, reflecting a 0.23% gain from the previous week, according to a report by Punch.
On a monthly basis, the naira improved by 0.13%, rebounding from its weaker close of ₦1,533.55/$ in July.
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Nigeria’s external reserves also strengthened, reaching $41.27 billion by the end of August, up from $41 billion earlier in the month.
Analysts at Cowry Assets Management noted that the naira’s performance was bolstered by improved FX liquidity and steady dollar inflows.
They highlighted that the parallel market also recorded a marginal gain, with the naira appreciating 0.37% week-on-week to ₦1,538.33/$, reflecting renewed trader confidence and easing speculative pressure.
Meanwhile, AIICO Capital observed that FX market stability during the week was largely driven by the Central Bank of Nigeria’s (CBN) interventions, which included selling around $70 million to ease demand pressures.
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By midweek, improved supply and interventions kept trading within the ₦1,525–₦1,538/$ band, before closing at ₦1,531.57/$.
Looking ahead, analysts expect the naira to remain stable, supported by ongoing CBN policies, though stronger dollar demand could limit further gains.
This outlook aligns with PwC’s 2025 Economic Forecast, which projects that the naira will remain broadly stable throughout the year, driven by CBN reforms and increased portfolio inflows.
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