The naira extended its appreciation against the US dollar, strengthening 0.29% to ₦1,476.35 at the Nigeria foreign exchange market on Monday. The local currency sustained its rally across multiple market segments, reflecting improved investor sentiment and subdued dollar demand.
Foreign exchange rates maintained upward momentum as export and oil companies’ inflows bolstered liquidity in the official window. Demand for the US dollar remained muted, creating favorable conditions for the naira’s continued appreciation against major currencies.
Risk-averse investors holding short-term structured dollar assets have begun unwinding positions to
Broadstreet analysts revealed that investors with locked-down funds in dollar denominations started selling amid fears that naira gains would erode their portfolio strength.
These strategic exits reflect expectations of sustained positive exchange rate movements and growing US dollar supply.
Central Bank of Nigeria data showed the spot FX rate touched an intraday low of ₦1,475 per dollar, while the highest rate reached ₦1,486.50. The naira’s performance strengthened as gross external reserves climbed to $42.256 billion on Friday from $42.225 billion the previous day.
In the parallel market, the naira appreciated 0.83% to ₦1,499.
FX traders expressed confidence about the naira’s outlook, citing reserve accretion and improved foreign exchange liquidity as key supportive factors.