By Seun Ibiyemi
The naira posted a marginal appreciation against the United States dollar at the official foreign exchange market during the week ended May 29, 2026, supported by sustained market stability and improving investor confidence despite reduced trading activities due to the Eid-el-Kabir public holidays.
Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) showed that the local currency closed the week at about N1,373.25/$, compared with N1,375.41/$ recorded at the beginning of the week, representing a gain of N2.16 against the greenback.
The week witnessed only three trading sessions following the Federal Government’s declaration of Wednesday and Thursday as public holidays for the Eid-el-Kabir celebrations.
At the official market, the naira maintained relative stability, reflecting the impact of ongoing foreign exchange reforms by the Central Bank of Nigeria (CBN) and improved liquidity conditions within the market.
Analysts noted that the narrow movement in the exchange rate suggests reduced volatility and growing confidence among market participants.
In the parallel market, however, the currency recorded mixed performances. While some market reports indicated that the naira strengthened slightly to around N1,380/$ from N1,385/$ earlier in the week, others showed the exchange rate hovering between N1,390/$ and N1,395/$, reflecting persistent demand pressures in the unofficial segment.
Market observers attributed the currency’s resilience to improved external reserves and continued efforts by monetary authorities to sustain exchange rate stability.
Nigeria’s external reserves stood at approximately $49.34 billion during the week, providing a stronger buffer for foreign exchange interventions and supporting confidence in the naira.
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The marginal appreciation comes amid broader signs of macroeconomic stabilization, with policymakers expressing optimism that ongoing reforms would continue to strengthen market fundamentals, attract foreign investments and ease pressure on the foreign exchange market.
Financial analysts expect the naira to remain relatively stable in the near term, supported by stronger reserves, improved foreign exchange inflows and sustained policy measures aimed at enhancing transparency and liquidity in the currency market.
