The naira recorded further gains at the official foreign exchange market on Monday, extending its recent recovery as improved dollar availability and easing demand supported the local currency.
Figures from the Central Bank of Nigeria showed that the naira closed at ₦1,442.51 to the dollar at the Nigerian Foreign Exchange Market, marking its fourth consecutive day of appreciation. The rally follows the currency’s recent low of ₦1,464.49/$ on December 19, reflecting a steady rebound as year-end trading conditions improve.
Market watchers attribute the appreciation to better dollar liquidity and calmer demand conditions typically seen toward the close of the year. Analysts noted that the absence of sharp price swings points to increasing stability in the market and improved price discovery.
In contrast, the parallel market recorded a marginal weakening, with the naira slipping by 0.42 per cent to trade at around ₦1,461/$ on Monday. Despite the divergence, traders said the modest movement suggests resilience, particularly in the face of recent geopolitical developments that might ordinarily have unsettled the market.
Unlike earlier episodes of uncertainty, investor sentiment remained largely stable, with no signs of panic-driven demand for foreign currency. Observers noted that recent developments, including reported United States airstrikes linked to Nigeria, failed to trigger the kind of market anxiety seen in previous months.
Adding to the sense of calm, Finance Minister and Coordinating Minister of the Economy, Wale Edun, sought to reassure investors during the holiday period. He stressed that Nigeria was not at war and described the strikes as targeted actions that should not undermine economic confidence.
With improved liquidity conditions and measured investor behaviour, analysts say the naira’s festive rebound could help set a steadier tone for the foreign exchange market heading into the new year.
