The naira maintained its appreciation streak at the Nigerian Foreign Exchange Market (NFEM), closing at 1,351.02 per dollar on Tuesday, as improved liquidity and sustained foreign inflows continued to bolster the local currency.
The upward trend, which began at the start of the month, persisted into the latest trading session, reflecting renewed confidence in the regulated segment of the foreign exchange market.
At the official window, the naira opened the week on a positive note, gaining 86 basis points or N11.80 against the United States dollar. The appreciation was largely attributed to strong foreign exchange supply from Foreign Portfolio Investors (FPIs) and domestic market participants. During Monday’s session, the currency traded within a band of 1,360.00/$ to 1,352.50/$ before settling at 1,354.26/$.
On a weekly basis, the naira recorded a gain of about N20.36, closing at 1,366.19/$ last week. Although marginal reversals were observed on February 5 and 6, the broader trajectory remains firmly positive. Overall, the currency has appreciated by approximately 2.8 per cent relative to its February 2 position at the official window.
Market analysts say the sustained moderation in the NFEM rate signals improving liquidity conditions and growing stability within the official foreign exchange segment.
The positive momentum was also reflected in the parallel market. CardinalStone, in its market update, reported that the naira strengthened by 0.21 per cent to close at 1,447.00/$.
Similarly, Cowry Assets Management noted that the domestic currency remained stable at 1,426/$ in the parallel market, suggesting relative calm in the informal segment.
Looking ahead, market analysts remain cautiously optimistic. AIICO Capital projected that the naira would sustain its positive momentum this week, citing steady inflows and continued reserve accretion as supportive factors.
“Barring any significant shift in supply, we expect the naira to trade within a similar range, supported by steady inflows and reserve accretion,” the firm stated.
Afrinvest shared a similar outlook, noting that the currency is likely to maintain its current trajectory in the absence of any adverse market shocks.