Naira Strengthens to N1,394/$1, Highest Level Since May 2024
The naira appreciated to ₦1,394 to the dollar at the official foreign exchange market on Wednesday, marking its strongest performance since May 2024, according to data from the Central Bank of Nigeria (CBN).
Figures published on the CBN’s website, which tracks transactions at the Nigerian Foreign Exchange Market (NFEM), show that the local currency gained ground after weeks of volatility that had kept the exchange rate under sustained pressure.
The latest appreciation brings the naira closer to levels last recorded in late May 2024, sparking cautious optimism among analysts and market participants that recent reforms in the foreign exchange market may be beginning to yield results.
Currency traders and financial analysts say the strengthening reflects a combination of improved FX liquidity, tighter monetary conditions and continued intervention by the apex bank to stabilise the market.
While the development has been welcomed, experts caution that the recovery remains fragile, noting that the gap between the official and parallel markets has yet to fully close.
“The move to ₦1,394/$1 is encouraging, but sustained stability will depend on consistent dollar inflows and confidence in the FX framework,” a market analyst said.
The naira has experienced sharp swings in recent months amid reforms aimed at unifying the exchange rate, curbing speculation and attracting foreign investment.
These changes initially triggered volatility as the market adjusted to a more transparent pricing mechanism.
Although Wednesday’s appreciation signals renewed momentum, analysts say inflationary pressures, import demand and global financial conditions will continue to influence currency movements in the near term.
Market watchers are now closely monitoring upcoming FX auctions, external reserves data and policy signals from the Monetary Policy Committee to determine whether the naira can sustain its gains or consolidate around current levels.
Despite lingering challenges, the latest data has strengthened expectations that the naira may be entering a phase of relative stability, provided current reforms are maintained.
