Sustaining its previous momentum, the naira appreciated further against the U.S. dollar, reflecting improved market confidence and easing demand pressures in the foreign exchange market.

The Nigerian currency also appreciated against the British pound to N2,065/£1 and  N2,070/£1 while it maintained the same sell price of N2,090/£1 as the previous day.

Against the euro, it depreciated to N1,765/€1 from N1,760/€1, while the sell price rose to N1,785/€1 from N1,780/€1.

In the official market, the naira declined to N1,487/$1 from the previous day’s close of N1,489/$1. Data from the Nigerian Foreign Exchange Market (NFEM) showed the naira fluctuating between N1,482.55/$1 and N1,495/$1 during Tuesday’s trading session.

The naira’s strength signals renewed momentum in the foreign exchange market, though sustained gains will require firm fiscal discipline and consistent monetary reforms.

Throughout the week, the naira experienced a rollercoaster ride against the US dollar, declining in the official market while appreciating in the parallel market.

The market opened on Monday with optimism as the naira strengthened to N1,531.19/$1, up from last Friday’s close of N1,536.89/$1.

However, from Tuesday, the naira began depreciating against the dollar despite intervention by the Central Bank of Nigeria (CBN), continuing this downward trend until Thursday. By Friday, the naira appreciated by 0.11% to N1,536.82/$1, closing almost at the same rate as last Friday’s N1,536.89/$1.

In the parallel market, the naira appreciated on Friday, closing at N1,540/$1, a 0.96% increase from Thursday’s N1,555/$1. Similarly, it strengthened against the British pound by 0.25%, closing at N1,990/£1 from N1,995/£1. The naira also gained 0.30% against the euro, closing at N1,660/€1, up from N1,665/€1.

Earlier in the week, the CBN sold $41.6 million at rates between N1,527.50/$1 and N1,531/$1 to help stabilize the market. Midweek, it injected an additional $27.9 million.

However, these interventions did not yield immediate results as the naira continued to weaken. But by the end of the week, the currency regained its earlier losses, closing at the same rate as last Friday.

Market players believe the CBN will continue to support the naira in an effort to stabilize the market.

The currency also depreciated in the parallel market, closing at N1,575/$1, a 0.35% drop from Monday’s rate of N1,570/$1. This is a 4.65% week-on-week decline in naira value against the US Dollar.

Within the official market, the naira traded at an intraday high of N1,540/$1 and a low of N1,520/$1, showing the rate of volatility as forex demand increases.

Added to this, the naira also weakened against other major currencies. The euro traded at N1,635/€1, down 0.93% from N1,620/€1 on Monday, while the British pound appreciated by 0.50%, rising to N1,980/£1 from N1,970/£1.

The naira’s continued depreciation is a growing concern for market players and stakeholders. Businesses and investors are monitoring the developments as Nigeria seeks to overcome forex challenges.