By Seun Ibiyemi
The Nigerian naira recorded a relatively stable performance on Monday, reflecting improved liquidity conditions and continued policy interventions by monetary authorities to stabilise the foreign exchange market.
At the official window, the local currency traded within a narrow range against the U.S. dollar, signaling a degree of market confidence as supply conditions showed modest improvement.
Market participants attributed the stability to sustained efforts by the Central Bank of Nigeria (CBN) to boost foreign exchange inflows and enhance transparency in the market.
Traders noted that increased dollar supply from exporters and foreign portfolio investors contributed to easing pressure on the naira, while ongoing reforms in the FX framework have helped reduce volatility in recent sessions.
In the parallel market, the naira also showed signs of stability, with only marginal fluctuations recorded during the day.
Analysts said the narrowing gap between official and parallel market rates indicates gradual convergence driven by policy adjustments and improved confidence.
Economic experts, however, cautioned that sustaining the naira’s stability would depend on consistent FX inflows, improved oil revenues, and disciplined monetary management.
READ ALSO:DMO opens May 2026 FGN savings bond offer with returns up to 14.525%
They also pointed to the need for structural reforms to boost non-oil exports and reduce demand pressure on foreign exchange, which remains a key factor influencing the currency’s long-term performance.
Despite lingering challenges, today’s performance suggests a cautiously optimistic outlook for the naira as authorities continue efforts to strengthen the country’s external reserves and stabilise the currency.
