Naira Sets New Record, Extends Appreciation Against US Dollar, Pound, Euro
- The Nigerian currency has strengthened against major currencies in official, black market
- Analysts say recent forex reforms, improved liquidity, and better price transparency are supporting the naira
- Rise in Nigeria’s foreign reserves has also helped the naira stabilise after fresh inflows from the CBN’s OMO bills auction
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.
The naira has maintained its positive momentum against the US dollar on Wednesday, January 7.
Data from the Central Bank of Nigeria showed that the Nigerian currency gained to close at N1,418.26/$1 in the Nigerian Foreign Exchange Market (NAFEM) a 81 Kobo or 0.06% improvement from Tuesday’s closing rate of N1,419.07/$1.
Source: Getty Images
Wednesday's rate marks naira's strongest level since the introduction of the Electronic Foreign Exchange Matching System (EFEMS).
Naira vs dollar, pound
The naira also strengthened against other major currencies, rising by N3.63 to N1,913.66/£1 versus the Pound Sterling and gaining N3.09 to N1,657.52/€1.against the Euro in the official market, CBN data shows.
At GTBank’s forex desk, the currency appreciated by N10 to settle at N1,425/$1.
In the black market, currency told Legit.ng that the rate is getting close to N1,500/$ again.
Abdullahi, a BDC trader, said:
"I’m currently selling US Dollars at N1,499 and buying at N1,484. British Pounds are N2,005 to sell and N1,980 to buy, while Euros are N1,730 to sell and N1,710 to buy."
Positive outlook for the naira
Meanwhile, analysts at CardinalStone said in a January forecast attributed the naira’s resilience in the official market to a more supportive domestic environment, though they warned that weak global oil prices and rising domestic insecurity could affect the currency’s trajectory.
The analyst said:
“Recent reforms in Nigeria’s foreign exchange market are yielding results, with improved price discovery, better transparency, and stronger FX liquidity helping stabilise the naira”.
The firm expects the currency to trade between N1,350/$1 and N1,450/$1 in 2026, supported by improving fundamentals.
Source: Getty Images
Also, Yemi Kale, Senior Economist at Africa Export-Import Bank (Afreximbank), noted that the naira could fluctuate between N1,313/$1 and N1,650/$1 depending on oil prices, FX inflows, inflation trends, and policy consistency, Leadership reports.
He cautioned that weak oil production or low prices could reduce FX inflows, worsen liquidity, and force currency devaluation.
For Anchoria Securities Limited the naira would likely continue trading in line with market demand and supply, underpinned by a stronger external reserves position.
Meanwhile, Nigeria’s foreign reserves rose to $45.623 billion following fresh inflows from investors participating in the Central Bank of Nigeria’s (CBN) OMO bills auction on Tuesday.
CBN announces new rule for dollar card
Legit.ng earlier reported that the Central Bank of Nigeria (CBN) has instructed banks and non-bank payment service providers to update all ATMs, PoS terminals, and virtual payment platforms to ensure they can process foreign-issued cards.
The instruction, detailed in a circular signed by Rita Sike, Director of the Financial Policy and Regulation Department, also requires that card acceptance devices enable contactless payments for low-value transactions.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
