Nigeria’s currency, the naira, appreciated to N1,365 per dollar at the official foreign exchange market, reflecting a modest gain as the U.S. dollar weakened globally.
The latest figures from the Central Bank of Nigeria show an improvement from N1,369/$ recorded in the previous session, signaling a slight easing of pressure on the local currency.
The development coincides with a broader decline in the U.S. dollar, which is experiencing its largest weekly loss since January. The dollar index fell by about 1.3% during the week as global investors shifted away from safe-haven assets following easing geopolitical tensions and growing expectations that stability will return to key oil supply routes in the Middle East.
This renewed risk appetite has supported emerging and frontier market currencies, including the naira.
During the trading session, the naira moved within a band of N1,351.5/$ to N1,365/$, settling at an average rate of N1,359.9/$, indicating relatively stable demand and supply dynamics in the official market window.
At the same time, other global currencies such as the euro, British pound, and commodity-linked currencies also posted gains against the dollar, reinforcing the trend of broad-based dollar weakness.
Despite the short-term appreciation, underlying pressures remain. Nigeria’s external reserves have continued to decline, recently falling to $48.89 billion, raising concerns about the sustainability of currency support.
In addition, global shipping flows, particularly through critical oil transit routes, have yet to fully normalize, suggesting that uncertainties in the global energy market persist.
The naira’s current strengthening is largely driven by external factors rather than domestic structural improvements. Its near-term trajectory will depend on the durability of global risk sentiment, oil market stability, and the country’s ability to maintain consistent foreign exchange inflows.
Source: Nairametrics
