Naira Recovers Further Against Dollar at Official FX Windows

Recovers Further Against Dollar at Official FX Windows

The Naira gains strength against the US dollar at the official FX window, closing at ₦1,457.95/$1, according to the Central Bank of Nigeria (CBN).

Nigeria’s Currency Continues Its Upward Momentum

The Nigerian Naira continues its steady recovery in the foreign exchange (FX) market, recording further appreciation against the US dollar at the official trading window on Friday.

According to data released by the Central Bank of Nigeria (CBN), the Naira closed at ₦1,457.95 per US dollar, improving from ₦1,460.49/$1 recorded the previous day. This signifies a ₦2.54 gain for the local currency against the American greenback — a positive development amid recent volatility in the exchange market.

Breakdown of Naira’s Performance Across Major Currencies

The CBN data also revealed how the Naira performed against other key global currencies, including the British Pound, Euro, and Canadian Dollar.

Here’s the breakdown of the latest rates:

US Dollar (USD): ₦1,457.95 — up from ₦1,460.49
British Pound (GBP): ₦2,020 — a ₦5 decline from ₦2,015
Euro (EUR): ₦1,730 — a ₦10 depreciation from ₦1,720
Canadian Dollar (CAD): ₦1,200 — unchanged from the previous day

This data shows that while the Naira strengthened against the US dollar, it slightly weakened against the Pound and Euro, remaining stable against the Canadian dollar.

Naira Gains at the Parallel Market

At the parallel market (black market), the Naira also recorded improvement. The local currency appreciated by ₦5, trading at ₦1,495/$1, up from ₦1,500/$1 on Thursday.

This upward movement reflects a positive market response to recent CBN interventions and sustained liquidity injections aimed at stabilizing the exchange rate.

Factors Behind the Naira’s Recovery

Experts attribute the Naira’s recent gains to several key factors:

Increased FX supply from the CBN and commercial banks.
Higher remittances from Nigerians abroad through formal channels.
Improved investor confidence, following the apex bank’s reforms in the FX market.
Reduced speculative activities in the black market, as more individuals and businesses opt for official FX sources.

The CBN’s FX reforms have also streamlined access to foreign currency, narrowing the margin between the official and parallel market rates. As of Friday, the difference between both markets stood at approximately ₦21.6 per dollar, down from ₦30.1 the previous week.

What This Means for the Nigerian Economy

A stronger Naira brings mixed implications for Nigeria’s economy.

On one hand, importers and consumers benefit from reduced costs of imported goods, which can help curb inflation. On the other, exporters may face reduced profits, as a stronger Naira makes Nigerian goods more expensive in foreign markets.

However, analysts maintain that exchange rate stability — not necessarily a stronger currency — is the key to restoring investor confidence and economic balance.

What Analysts Are Saying

According to financial experts, the recent Naira recovery is a positive signal that the market is gradually adjusting to reforms.

A Lagos-based economist, Dr. Chidi Nwosu, stated:

“We’re seeing early signs of confidence in the FX market. As long as the Central Bank maintains transparency and ensures consistent supply, the Naira could stabilize below ₦1,450 in the coming weeks.”

Meanwhile, currency traders on AbokiFX, a popular platform for parallel market rates, have noted similar patterns of modest appreciation in recent days.

Will the Naira Continue to Strengthen?

While it’s encouraging to see the Naira recover, economists warn that sustained improvement depends on several factors:

Steady oil revenue inflows
CBN’s continued FX market interventions
Reduction in import dependency
Effective fiscal policies and spending discipline

If these fundamentals are maintained, the Naira could achieve a more stable exchange rate in both the official and parallel markets.

Final Thoughts

The Naira’s recent appreciation to ₦1,457.95/$1 at the official FX window is a sign of resilience and potential stability in Nigeria’s currency market. As the CBN continues implementing reforms to unify exchange rates and restore investor trust, more positive outcomes could emerge in the months ahead.

For accurate and real-time updates, always check the Central Bank of Nigeria’s official website or trusted financial news outlets like BusinessDay and Punch Newspapers.

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