The Nigerian Naira recorded a strong week-long rally against the United States dollar, closing Friday’s trading session at N1,417.94/$, in another notable show of renewed strength in the foreign exchange market.
Data published on the Central Bank of Nigeria (CBN) official portal shows that the local currency appreciated by N1.33 on Friday alone, representing a 0.09 per cent gain from Thursday’s closing rate of N1,419.28/$.
The latest improvement capped a consistently positive trading week for the Naira, reinforcing growing optimism that the currency is gradually regaining stability after prolonged volatility.
The rally began on Monday with an opening gain of N1.70, as the Naira settled at N1,421.45/$. Momentum was sustained on Tuesday when the currency strengthened further to N1,419.65/$, reflecting an additional N1.79 appreciation.
Although the market experienced a mild setback on Wednesday, with the Naira slipping by 37 kobo to N1,420.03/$, the decline proved short-lived. The currency rebounded on Thursday with a 75 kobo gain, paving the way for Friday’s stronger close.
Analysts say the sustained appreciation aligns with widespread approval of the CBN’s aggressive reform measures, which are increasingly stabilising the foreign exchange market and restoring investor confidence.
Market watchers attribute the renewed strength to improved dollar inflows, healthier external reserves and tighter monetary discipline, factors many believe are finally reversing years of persistent pressure on the local currency.
Despite the gains at the official window, the parallel market continues to trade at a premium, with the dollar reportedly exchanging between N1,465 and N1,495. However, the narrowing gap between official and informal rates is widely seen as a positive signal of rising confidence in the formal forex system.
Broader market indicators from platforms such as Trading Economics also reflect the positive trend, with the USD/NGN rate drifting towards 1,422, further confirming the Naira’s improving trajectory in recent sessions.
