At the close of trading at the Nigerian Foreign Exchange Market (NFEM), the naira appreciated to N1,348.95 per dollar. The milestone represents the first time the currency has traded below the N1,350 threshold since May 29, 2024, when it closed at N1,329.65 per dollar.
Figures published by the Central Bank of Nigeria (CBN) showed that the local unit strengthened from N1,354.90 per dollar recorded on Monday, reflecting steady momentum at the official window. The appreciation follows the CBN’s decision to allow BDC operators to resume participation in the official segment of the foreign exchange market, a move seen as a step toward improving liquidity and easing demand pressures.
Month-to-date, the naira has gained N41.41, representing a 2.97 per cent improvement from the N1,390.36 per dollar rate recorded at the beginning of the month. On a year-to-date basis, the currency has appreciated by N81.89 or 5.7 per cent, compared with N1,430.84 per dollar at the start of the year.
Market observers attribute the sustained gains at the official window to improving external reserves and heightened expectations ahead of the CBN’s forthcoming Monetary Policy Committee (MPC) meeting. The stronger reserve position is widely viewed as enhancing the central bank’s ability to support liquidity and defend the currency.
Despite the improvement in the official market, the parallel segment continued to reflect mild but persistent demand pressure. The naira traded at N1,443.68 per dollar on Tuesday in the informal market, slightly weaker than the N1,443.40 per dollar quoted on Monday, underscoring the lingering gap between the two segments.
Analysts say the reopening of the official window to BDCs, combined with sustained reserve accretion, signals firmer foreign exchange liquidity conditions. Authorities are expected to continue efforts aimed at stabilising the naira and narrowing the disparity between official and parallel market rates as part of broader currency reform measures.