Naira Strengthens to N1,355/$, Hits Four-Week High

Naira Strengthens to N1,355/$, Hits Four-Week High   The Nigerian naira extended its recent rally on the foreign exchange market, appreciating to N1,355 per dollar, its strongest level in four weeks, amid improved liquidity and growing investor confidence.

Data from the official market indicates that the local currency has recorded consistent gains in recent trading sessions, supported by increased foreign exchange inflows and reduced demand pressure.

The appreciation marks a notable recovery from earlier volatility that had weakened the naira in previous weeks. Market analysts attribute the rally to ongoing efforts by the Central Bank of Nigeria to stabilize the currency through policy measures and improved dollar supply.

These interventions, alongside tighter monetary conditions, have helped boost confidence among investors and market participants.

The strengthening has also been linked to a gradual convergence between the official and parallel market exchange rates, a development seen as critical in restoring transparency and efficiency in Nigeria’s FX market.

Financial experts say the naira’s performance could be sustained if current conditions persist, particularly with steady inflows from oil revenues and foreign portfolio investors.

However, they warn that external factors such as global oil price fluctuations and shifts in investor sentiment could pose risks to the currency’s stability.

Despite these uncertainties, the naira’s climb to a four-week high signals a positive short-term outlook, with stakeholders hopeful that ongoing reforms will continue to support the currency in the coming weeks.