Expert Forecasts Naira Performance Against US Dollar Next Week
- Nigeria currency was projected to continue strong performance against the US dollar in all markets.
- Analysts stated that the Nigerian currency will strengthen slightly next week, supported by less dollar demand
- The currency closed at N1,455/$1 on Thursday, compared with N1,485 a week earlier on the official market
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
An expert has projected that the naira will appreciated against the United States dollar in the coming week compared to other African currencies.
Bloomberg reported that the performance of the naira will improve next week supported by central bank dollar sales and reduced foreign-currency demand.
Source: Getty Images
Naira to dollar exchange rate
The naira appreciated on Thursday, October 2, to N1,455 a dollar, the highest level in 2025.
Nigerian currency gained N20.11 or 1.36% against its US dollar to sell for N1,455.24/$1, in contrast to Tuesday’s closing price of N1,475.35/$1.
The currency was quoted around N1,485/$1 a week earlier.
It was a good day for the naira in the parallel market on Thursday, gaining N20 against the US dollar to trade at N1,560/$1, up from N1,580/$1 in the previous session.
The positive performance of the naira over the past week, reflecting improved funding conditions in the financial system and sustained CBN interventions.
A Lagos-based trader told Bloomberg:
“I expect the naira to edge stronger this week, thanks to easier funding conditions which are helping to reduce pressure on liquidity and rising reserves giving the central bank some room to manoeuvre.”
African currencies outlook
The positive forecast for naira contrasts with other African currencies, where pressure is expected to mount in the near term.
Ghana’s cedi under pressure
Bloomberg reported that Ghana’s cedi may weaken as dollar demand from the manufacturing, energy, and services sectors continues to rise.
LSEG data showed the cedi trading at 12.50/$1 on Thursday, down from 12.30/$1 the previous week.
Chris Nettey, head of trading at Stanbic Bank Ghana:
“The cedi remains on a gradual depreciation path despite sustained interventions by the central bank through its FX auctions."
Source: Getty Images
Zambia’s kwacha outlook
Similarly, Zambia’s kwacha is likely to stay on the defensive. The currency traded at 23.99/$1 on Thursday, compared with 23.97/$1 a week ago.
Access Bank said in a note;
“Given current market conditions where demand for hard currency continues to outstrip supply, the kwacha is likely to remain under pressure."
Kenya’s shilling remains stable
In contrast, Kenya’s shilling is expected to remain steady, consistent with its performance throughout the year. It traded at 129.00/40 per dollar on Thursday, compared to 128.90/129.30 last week.
A trader told Bloomberg:
“We see it remaining stable, as dollar demand is equally supported by supply.”
Nigeria’s foreign reserves rise to highest level
Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) announced that Nigeria’s foreign exchange reserves rose to $41 billion.
This was the highest level FX reserves reached in 44 months, almost four years.
The level of Nigeria’s foreign reserves, at $41 billion, was the highest since December 3, 2021, marking a significant recovery after months of depletion caused largely by external debt repayments.
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Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
