Naira strengthens below N1,460/$ as CBN support sustains forex market stability

The naira began the week on a positive footing on Monday, appreciating to below N1,460 against the United States dollar, a development widely seen as a sign of renewed stability in Nigeria’s foreign exchange market.

Data released by the Central Bank of Nigeria (CBN) showed that the local currency exchanged at N1,456/$1 on Monday, improving from N1,466.5/$1 recorded on Friday and N1,462.9/$1 on Thursday.

The modest appreciation suggests that the naira has recovered some ground after last week’s gradual depreciation, maintaining a stable trajectory rather than experiencing a sharp or speculative spike.

CBN figures further indicate a steady week-on-week improvement, with the exchange rate moving from N1,462.9/$1 on Thursday to N1,456/$1 on Monday.

When compared with last Monday’s close of N1,454/$1, the naira’s performance points to sustained strength rather than a short-lived rebound.

Activity in the parallel market also reflected relative calm. Currency dealers in Abuja said the naira traded at about N1,481/$1 for buying and N1,489/$1 for selling on Monday, improving from the N1,500/$1 level seen on Friday.

Economists and foreign exchange analysts attributed the currency’s stability to consistent interventions by the CBN, including strategic supply of foreign exchange and tighter regulatory oversight. According to them, these measures have helped moderate volatility and improve market confidence.

“The currency’s resilience below N1,500 per dollar reflects both policy support and increased forex inflows from trade and remittances,” said Benjamin Njoku, an Abuja-based financial analyst.

Another analyst, Ade Johnson, noted that seasonal factors also play a role. “It’s December, and some level of volatility at this time is quite normal,” he said, adding that recent movements remain within a manageable range.

In a broader context, the naira has continued to face pressure from import demand and fluctuations in global oil prices. However, analysts observed that recent months have been marked by controlled depreciation, which has helped restore confidence among businesses and investors.

The currency’s steady performance has offered some predictability for importers, exporters and consumers, easing planning and transaction risks. Market watchers say that if the current trend is sustained, it could further boost investor confidence, support economic activity and shield the economy from extreme exchange-rate swings.

Meanwhile, President Bola Tinubu on Friday presented the 2026 Appropriation Bill to the National Assembly, describing its assumptions as conservative.

Key projections in the budget include an oil price benchmark of $64.85 per barrel, crude oil production of 1.84 million barrels per day, and an exchange rate of N1,400/$1.

However, concerns have been raised over fiscal transparency following reports that the 2026 budget was presented without the release of a detailed 2025 performance report. Analysts say this development, alongside broader macroeconomic conditions and foreign exchange dynamics, could influence short-term market sentiment.