The naira broke the key N1500 per dollar psychological barrier on Monday, closing at N1,495 per US dollar at the Nigerian Foreign Exchange Market (NFEM).
Data from the Central Bank of Nigeria (CBN) showed the official spot rate touched an intraday low of N1,493 while some trades closed as high as N1,502.
Last week, the naira posted a strong performance at the Nigerian Autonomous Foreign Exchange Market (NAFEM), appreciating by 0.98% week-on-week to N1,501.50 per US dollar.
In the parallel market, the currency also gained 0.33% to settle at N1,535, leaving the official rate at a 2.23% premium of N35.50.
Nigeria’s gross external reserves climbed by US$357.84 million during the week to reach US$41.66 billion.
The naira’s resilience can be attributed to sufficient dollar liquidity and steady reserve accretions, which continue to underpin market stability.
Experts expect the naira to trade within a narrow band in the near term, buoyed by sustained foreign portfolio inflows and healthy reserve levels.
However, they warn that renewed pressure could surface if portfolio inflows slow or if demand spikes during the upcoming festive season, testing the currency’s recent gains.
