The Naira appreciated against the US dollar on Monday, closing at N1,599.00/$1 in the official market.
This is according to data published on the Central Bank of Nigeria’s (CBN) website on Monday.
This represents a notable appreciation from N1,626.00/$1 on Friday and N1,630.50/$1 on Thursday.
This marks a notable recovery for the local currency after it began the previous week on a weaker note.
On Monday, 7 April 2025, the Naira had depreciated to N1,629.00/$1, compared to the preceding Friday’s close of N1,600.00/$1. It later settled at N1,626.00/$1 on Friday, 11 April, before Monday’s rebound.
Parallel market movements
In the parallel market, the Naira traded at N1,605.00/$1 on Monday, strengthening from Friday’s rate of N1,624.35/$1, according to currency traders at the popular Wuse Zone 4 exchange hub in Abuja.
The Naira also showed varied performance against other global currencies in the official market. It traded at N2,126.39 per SDR, and at N1,770.13 per Euro, based on figures from the CBN.
A Bureau De Change (BDC) operator in Wuse Zone 4, Abuja, confirmed the Monday rate, noting a slight improvement in dollar availability compared to the previous week.
Analysts link gains to calmer global sentiments, CBN interventions
Currency experts believe the Naira’s recent recovery may be attributed to a reduction in global economic tensions, particularly the recent easing of trade hostilities between the United States and China.
According to Tope Adepegba, a financial analyst “Let’s say it’s the Trump effects. Don’t forget, [President] Trump had relaxed some of his tariffs against China last week.”
This has helped restore some stability to the foreign exchange market.
- Some forex traders attribute the volatility in the foreign exchange market to the Central Bank’s inconsistent dollar allocations to Bureau De Change (BDC) operators.
- In addition, Nairametrics reported last week that the CBN has intensified efforts to stabilize the Naira by intervening in the foreign exchange market.
- The apex bank reportedly sold an estimated $200 million across various official rates last week in its ongoing bid to boost liquidity.
- This followed an earlier $197 million injection on Friday, 4 April, and a cumulative $124 million disbursed over the course of the previous week.
Market watchers suggest that the CBN’s consistent dollar supply has helped ease pressure on the local currency and narrow the gap between the official and parallel market rates.
Observers say the CBN’s recent actions may reflect an evolving strategy to instill confidence among investors and FX market participants, while ensuring that critical sectors of the economy, such as manufacturing and import-dependent businesses, have improved access to forex at stabilized rates.
