The Naira opened at ₦1,398.24 per dollar in the Nigerian Foreign Exchange Market (NFEM) early Tuesday, briefly touching a high of ₦1,398.82 before regaining some strength.
By mid-morning trading, the currency had appreciated to ₦1,396.24 per dollar, as foreign exchange supply from the Central Bank of Nigeria (CBN) and authorised dealers met prevailing market demand.
Authorised dealers noted that the apex bank has remained proactive in maintaining the “willing-buyer, willing-seller” framework, helping to prevent the speculative spikes that historically affected the market during early Tuesday sessions.
Market analysts attribute the continued convergence in exchange rates to the CBN’s sustained foreign exchange supply to Bureau De Change (BDC) operators, a move that has broadened access to FX and reduced the need for high-premium transactions in the informal market.
Several key macroeconomic factors are also supporting the Naira’s stability. Nigeria’s gross external reserves have recently surpassed the $50 billion mark, strengthening the country’s capacity to defend the currency against volatility and external shocks.
Meanwhile, headline inflation has eased to 15.10 percent, improving the Naira’s real value and enhancing its appeal to both domestic and foreign investors.
Crude oil production has also remained steady at 1.46 million barrels per day, ensuring a consistent inflow of petrodollar revenues that continues to support stability in the NFEM.
Additionally, the 50-basis-point reduction in the Monetary Policy Rate (MPR) to 26.5 percent late last month has helped shift the market into a stabilisation phase, which analysts say could encourage stronger long-term capital inflows.
