The Nigerian naira extended its rally on Monday, closing at ₦1,518/$ on the official market — its strongest performance in four months. This latest appreciation, representing a 0.74% gain, reflects mounting confidence in Nigeria’s foreign exchange reforms and renewed Central Bank of Nigeria (CBN) intervention.
According to data from the CBN, Monday’s performance marked the first time the naira had traded below ₦1,520/$ since March 14, 2025, when it settled at ₦1,517.93/$. Market analysts have attributed this rebound to improved FX liquidity and last week’s $50 million CBN dollar sale, as well as a successful OMO auction that drew N2.17 trillion in subscriptions, reinforcing market stability.
Financial analysts at Anchoria Limited projected the naira would remain within a narrow range of ₦1,515–₦1,535/$ throughout the week, supported by increasing foreign investor participation and consistent CBN intervention. “These actions have helped ease demand pressures and boost market confidence,” Anchoria noted.
Parallel market figures also showed a mild recovery, with the naira appreciating to ₦1,540/$ on Monday from ₦1,545/$ the previous day, despite continued volatility driven by dollar demand and limited supply. Cowry Assets Management highlighted that, while the currency faced setbacks last week, ongoing FX reforms and steady oil revenues have laid the groundwork for sustained currency recovery.
Mid-year analysis from CardinalStone underscores the broader global context, citing $22.83 billion in FX outflows in H1 2025 due to global risk-off sentiments. However, it also emphasized that the CBN’s intervention — averaging $786.58 million per month, far below pre-COVID levels — signals a more market-driven approach. “It is clear that the naira is now trading close to its fair value,” the report stated, dismissing fears of a return to a fixed exchange rate regime.
