By Seun Ibiyemi
The Nigerian naira, displayed signs of resilience on Monday as it posted modest gains against the United States dollar in the foreign exchange market, signalling a positive start to the week for the local currency.
Data from the Nigerian Foreign Exchange Market (NFEM) and parallel trading points across major cities indicated that the naira opened the week with a slight recovery against the U.S. dollar, suggesting easing pressure compared with recent volatility.
Market traders pointed to a narrowing spread between official and unofficial rates, which reflects improved liquidity conditions in the market and enhanced dollar supply.
Similarly, the British pound maintained a strong position against the naira in early trading, mirroring trends in major global FX markets and reflecting broader currency movements impacting Nigeria’s forex dynamics.
Read also:Dangote signs $4.2bn gas deal with China’s GCL Group
In Nigeria’s black market, where informal exchange rates often differ from official figures, the dollar recorded a moderate decline, attributed to a short-term increase in dollar availability that eased pressure on the naira’s value. As of Monday, the informal market rates stood at around ₦1,385 for buying and ₦1,395 for selling per dollar, showing a slight easing compared with recent sessions.
Analysts say these movements point to a forex market gradually stabilising after weeks of fluctuation, though continued attention to foreign exchange inflows from oil exports, remittances, and portfolio investment will be key to sustaining the trend.
The modest strength in the naira on Monday comes amid global uncertainties and local economic developments, but market watchers remain hopeful that improved liquidity measures and active participation by traders could underpin further stability in the currency market.
