The Nigerian naira has rallied to its strongest level in 15 months, trading at 1490 per dollar on the parallel market as reduced demand for the greenback eases pressure on the local currency.
The gain represents a sharp recovery from the previous rate of 1515 per dollar, marking an appreciation of 25 naira or about 1.67 percent. The last time the naira touched this level was in June 2024, highlighting a notable rebound.
In contrast, trading on the official market saw a slight dip as the naira closed at 1488.56 per dollar, down marginally from 1487.36 a day earlier. This narrowed the gap between both markets to just 1.44 naira.
Analysts note that the naira’s renewed strength is being supported by low dollar demand and improved liquidity conditions. However, they caution that long-term stability will depend on sustained foreign exchange inflows and continued intervention from the Central Bank of Nigeria.
At its latest Monetary Policy Committee meeting, the CBN reduced its policy rate by 50 basis points to 27 percent, a move expected to support economic activity while balancing inflation risks.
Market watchers say the currency’s performance in the coming months will hinge on oil earnings, diaspora remittances, and foreign investment flows to maintain the current momentum.
Be the first to comment