Naira strengthens to ₦1,590/$ amid CBN interventions

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GistReel

The Nigerian naira posted notable gains on Wednesday, breaking a key resistance level in the black market while the U.S. dollar slumped to a three-year low in the global foreign exchange market.

During mid-week trading at the parallel market, the naira appreciated to N1,590/$, up from the N1,595–N1,600/$ range recorded on Tuesday.

In the official Nigerian Foreign Exchange Market (NFEM), the local currency also showed marginal strength, improving from N1,550/$ to N1,549/$, according to data from the Central Bank of Nigeria (CBN).

The naira’s recent resilience is attributed to continued FX interventions by the CBN, strategic macroeconomic policy shifts, and renewed efforts to attract foreign capital inflows. Analysts believe that these moves are helping stabilize the currency and could maintain current exchange rate levels in the short to medium term.

Economic reforms introduced by the Tinubu administration, including fiscal restructuring and improved monetary coordination, are also reported to have boosted investor sentiment. This renewed confidence has enhanced Nigeria’s perception of its capital market and contributed to increased foreign portfolio investment activity.

Meanwhile, the weakening of the U.S. dollar globally has added momentum to emerging market currencies like the naira, providing a supportive environment for its modest rebound.

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