The naira strengthened on Monday in both the parallel and official foreign exchange markets, appreciating from ₦1,474 per dollar over the weekend to ₦1,465 per dollar in the parallel market.
In the Nigerian Foreign Exchange Market it firmed up to ₦1,452 per dollar, according to the Central Bank of Nigeria and market traders.
Official CBN data confirmed the rally in the NFEM, showing the exchange rate moved from ₦1,458 per dollar on Friday to ₦1,452, marking a ₦6 improvement in the naira’s value.
This upward movement reflects increased liquidity and effective interventions in the market supporting the currency.
The gap between the parallel and official markets also narrowed, shrinking to ₦13 per dollar from ₦16 at the end of last week.
A smaller spread suggests reduced arbitrage opportunities and points to a more stable and coordinated foreign exchange environment.
Analysts attribute the naira’s gains to sustained CBN interventions, improved dollar inflows through remittances and portfolio investments, and moderated demand pressures.
These factors have helped the currency absorb shocks and maintain relative strength.
However, market watchers caution that the gains may be fragile. Sustained appreciation will depend on consistent dollar supply, disciplined monetary policy, and broader economic confidence, as any sudden domestic or global market disruption could quickly reverse the recent strength of the naira.
