Naira appreciates to ₦1,346.49/$ at official FX market as liquidity improves

The Nigerian naira strengthened slightly against the United States dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), closing at ₦1,346.49 per dollar after gaining ₦1.13 from the previous trading session.

The latest exchange rate represents a marginal appreciation from the previous day’s closing rate of ₦1,347.62/$, continuing the naira’s recent stability within the official foreign exchange market.

According to official market data, the naira traded within an intraday range of ₦1,300/$ to ₦1,385/$ during the session, while total foreign exchange turnover stood at approximately $198.5 million, reflecting sustained activity and improved liquidity in the market.

The modest gain comes as the Central Bank of Nigeria (CBN) continues efforts to stabilize the foreign exchange market through liquidity management and reforms aimed at improving transparency in the official FX window.

Analysts say the naira’s resilience has also been supported by reduced demand for foreign exchange from fuel importers, following increased domestic refining of petroleum products, as well as improved supply of dollars through official channels.

The narrowing gap between the official and parallel markets has further contributed to exchange rate stability. Currency traders reported that the naira traded between ₦1,350 and ₦1,360 per dollar in the parallel market, maintaining a relatively small spread with the official rate.

Market observers say sustained FX inflows, improved investor confidence in government securities, and stable foreign exchange liquidity will remain key factors in determining the naira’s performance in the coming weeks.

While the appreciation is modest, it adds to signs of relative stability in Nigeria’s foreign exchange market after months of volatility driven by currency reforms and fluctuating demand for dollars.