Naira Rebounds, Appreciates Against US Dollar in Forex Market
- The naira recovered against the US dollar in the official market but weakened against the pound and euro
- At the GTBank forex counter, the naira declined against the dollar, while it remained stable in the parallel market
- Analysts expect stronger oil revenues, foreign portfolio inflows, and the CBN’s FX management to support the naira
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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 strengthened against the US dollar on Tuesday, January 20, in the Nigerian Foreign Exchange Market (NFEM), appreciating by 93 kobo, or 0.06%, to close at N1,419.35/$1 from Monday’s rate of N1,420.28/$1.
However, the local currency weakened against other major currencies in the official market. It depreciated against the British pound sterling by N2.43 to trade at N1,908.31/£1, compared with the previous day’s N1,905.88/£1.
Source: Getty Images
The naira also lost N13.53 against the euro, closing at N1,666.31/€1 versus N1,652.78/€1 in the preceding session.
At the GTBank foreign exchange counter, the naira declined against the US dollar by N5 to sell at N1,429/$1, down from Monday’s exchange rate of N1,424/$1.
Meanwhile, it remained unchanged in the parallel market.
Abdullahi, one of the BDC traders, told Legit.ng:
“The dollar buying rate is N1,484.99, while the selling rate is slightly higher. Previously, the buying rate was lower. The euro sells at N1,753.50 and is bought at a slightly lower rate.
"The British pound sterling is selling at N2,034.99, with a corresponding buying rate. The Canadian dollar (CAD) trades at N1,091.00.”
Market analysts said the naira is expected to remain within its current trading range in the near term, supported by stronger foreign currency inflows driven by higher oil revenues, improved foreign portfolio investment (FPI) participation, and consistent foreign exchange management by the Central Bank of Nigeria (CBN).
They added that increased inflows from exporters and importers, alongside supply from non-bank corporates, would further improve market liquidity.
Meanwhile, the US dollar came under pressure in the international market amid growing tensions between the United States and its European allies over Greenland.
President Donald Trump’s insistence that there would be “no going back” on his campaign stance reportedly triggered selloffs, with investors shifting to other safe-haven assets.
Source: Getty Images
Other currency exchange rates
The following exchange rates were recorded:
- CFA Franc: N2.50
- Chinese Yuan (Renminbi): N203.89
- Danish Krone: N222.95
- Euro: N1,665.72
- Japanese Yen: N8.99
- Saudi Riyal: N378.35
- South African Rand: N86.18
- Swiss Franc: N1,796.46
- British Pound Sterling: N1,907.64
- US Dollar: N1,418.85
10 reasons naira could weaken in 2026
Earlier, Legit.ng reported that Yemi Kale, Chief Economist at the Africa Export-Import Bank (Afreximbank), projected the naira’s performance during his keynote address at the FirstBank Nigeria Economic Outlook 2026.
He expects the currency to trade between N1,350 and N1,450 per US dollar in 2026.
In a baseline scenario, Kale anticipates that the naira will remain under pressure but is unlikely to collapse sharply, with an estimated rate of around N1,313 per dollar by June and about N1,340 by December 2026.
Source: Legit.ng
