Naira Strengthens: Hits 5-month peak as FX market shows signs of stability
Story by Martha Gwary
The naira continued its upward momentum this week, hitting a new five-month high on the Nigerian Foreign Exchange Market (NAFEM). The currency closed at N1,500.91 to the U.S. dollar, marking the second time this week it has broken below the N1,500/$ threshold—a significant achievement for 2025.
Data from Wednesday’s trading session showed the naira trading in a tighter band of between N1,498/$ and N1,507/$, reflecting its renewed resilience. This follows its previous close at N1,506/$ on both Monday and Tuesday before gaining further mid-week.
Meanwhile, on the parallel market, the naira was slightly weaker, trading between N1,510/$ and N1,512/$.
According to analysts, the naira’s appreciation is due to increased investor confidence in the Federal Government’s economic reforms and the Central Bank of Nigeria’s (CBN) efforts to stabilize the foreign exchange market.
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The CBN has implemented various measures, such as curbing speculative trading and promoting capital inflows, to restore market trust.
The currency’s recovery is already impacting corporate performance. Listed companies are reporting improved earnings as they more effectively manage the cost of imports in naira.
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Market watchers believe that a sustained positive trend could help relieve inflationary pressures in Africa’s largest economy, where imported goods heavily influence consumer spending.
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