The naira weakened modestly against the United States dollar at the start of the week, opening at N1,495.98/$ on Monday at the official foreign exchange market, according to data from the Central Bank of Nigeria (CBN).
The local currency shed N6.49, or 0.43 per cent, compared with its previous close of N1,489.49/$ on Friday, bringing to an end a short three-day appreciation streak. Market watchers described the movement as a mild correction rather than a reversal of recent stability trends.
Despite the decline, analysts say the naira has largely maintained a steady footing in recent weeks, supported by ongoing reforms introduced by the CBN to improve transparency and efficiency in the foreign exchange market. These measures, which include adjustments to trading frameworks and reporting standards, have helped reduce volatility and restore confidence among market participants.
Since December 2024, the naira’s performance has been relatively stable compared with earlier periods of sharp swings, reflecting improved liquidity management and a more market-driven exchange rate mechanism.
Economists note that short-term fluctuations remain expected as demand and supply dynamics continue to adjust, but they maintain that the broader outlook for the currency remains cautiously optimistic, provided current policy consistency is sustained.
