The naira weakened further on Tuesday, closing at N1,493.2 per dollar in the official market, following the conclusion of the 302nd Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN).
The naira experienced a significant rebound this week across both the official and parallel foreign exchange (FX) markets.
The naira is making steady progress in the foreign exchange market, appreciating toward a key monthly support level at N1,440 as it benefits from broad dollar weakness.
The Nigerian naira surged to a five-month high of N1,497.5/$ at the first trading session of the week in the official market., supported by better foreign exchange (FX) liquidity and less demand pressure.
Naira maintained its upward trend, closing at N1,500.91 against the American dollar on the Nigerian Foreign Exchange Market.
The naira took advantage of the situation in the European Union as it strengthened against the Euro amid the ongoing socio-economic crisis in France.
The Nigerian Naira posted its biggest one-day gain against the dollar in 2025 at the official foreign exchange market on Thursday, ahead of Friday's public holiday to commemorate Eid-ul-Mawlid, the birth of the Holy Prophet Muhammad.
The Nigerian naira had a marginal negative start to the week, trading at 1,533.67/$ on the Nigerian Foreign Exchange Market, down 0.08% from 1,532.51/$ on Friday.
Currency traders have linked the recent depreciation of the naira at the parallel market to the supply challenges in the foreign exchange market and the huge demand for forex as a result of payments to contractors by the Federal Government agencies.
The naira is in its longest stretch of stability this year, holding within a narrow band of N1,520–N1,537 per dollar for almost eight weeks, from mid-June to early August.
The naira lost value against the haven currency in the official and parallel forex markets on Tuesday, even after starting the week with a sharp rise.
The Naira fell to its weakest level in more than a week on the parallel market on Tuesday, trading at N1,565/$1.
