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The naira appreciated by 0.36 per cent on Monday, closing at ₦1,526.09 per dollar compared to ₦1,531.57 recorded at the previous trading session. This marks the strongest level for the local currency in about six weeks, according to data published on the Central Bank of Nigeria (CBN) website.

Performance in the parallel market also reflected the gains. Cardinal Stone Research reported that the naira rose by 1.22 per cent to settle at ₦1,527.33 per dollar, effectively removing incentives for speculative trading.

Analysts attributed the stronger performance to sustained inflows and CBN’s interventions. In its weekly outlook, Cowry Assets Management noted, “The naira would trade largely stable at the official window, supported by Central Bank of Nigeria interventions and modest FX inflows, though rising demand and a stronger U.S. dollar could limit further gains.”

Experts at AIICO Capital also projected stability in the near term, saying, “The naira is likely to maintain its current trading range in the new week, within the ₦1,525–₦1,538/$ band.”

Similarly, PwC in its economic outlook reinforced optimism over the currency’s trajectory. “The naira is expected to remain broadly stable through 2025, underpinned by ongoing CBN reforms and improved portfolio inflows,” it stated

Data further showed that the naira appreciated by 0.23 per cent week-on-week as it closed Friday’s session at ₦1,531.57/$, compared to the previous week’s close of ₦1,535.09/$. On a month-on-month basis, it strengthened by 0.13 per cent from ₦1,533.55/$ at the end of July, reversing the negative close recorded that month.

Meanwhile, Nigeria’s external reserves continue to improve. Figures showed reserves rose from $41.00bn in August to $41.27bn as of Friday, a sign of sustained dollar inflows and improved liquidity in the forex market.

Analysts said these developments were key drivers of the naira’s recent appreciation. “The strengthening of the naira was on the back of improved market liquidity and sustained dollar inflows,” one market expert explained.

On the global front, Reuters reported that the U.S. dollar fell to a five-week low on Monday as traders awaited labour market data that could shape expectations for the Federal Reserve’s monetary policy. Analysts cited by Reuters remarked, “The U.S. economy is no longer outperforming as it did for much of the past decade, justifying a weaker dollar, and further signs of a softening labour market are expected to bolster that narrative.

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