Nigeria’s currency is stabilizing after months of volatility, supported by reforms, stronger confidence and improved foreign exchange market conditions.
The Nigerian Naira strengthened slightly this past week, trading around N1,441.5/$ at the official market and N1,435–N1,450/$ in the parallel market. The currency is up 1.7% month-on-month and 13.5% year-on-year, with analysts describing its near-term outlook as stable to mildly bullish.
The improvement follows Nigeria’s removal from the FATF grey list, boosting investor sentiment, foreign reserves, and FX inflows. The naira even hit a 10-month high of N1,444.4/$ as more dollar holders sold off positions.
CBN’s FX reforms, liquidity injections, tighter oversight, and a more transparent market, have narrowed the official, parallel market gap. Rising oil prices, stronger remittances, and expected portfolio inflows are also supporting the currency.
Risks remain: inflation near 20%, FX demand pressures, import-driven dollar needs, and global currency volatility, especially a strong US dollar or swings in GBP/NGN.
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