By Ayomide Otitoju
The Naira opened at ₦1,398.24 per US dollar in the Nigerian Foreign Exchange Market (NFEM) early Tuesday, briefly rising to ₦1,398.82 before appreciating to ₦1,396.24 by mid-morning as supply from the Central Bank of Nigeria (CBN) and authorised dealers met market demand.
Authorised dealers noted that the apex bank’s proactive management of the “willing-buyer-willing-seller” framework has prevented the speculative spikes that often occur during Tuesday morning sessions. Analysts attribute the stability to the CBN’s consistent supply to Bureau De Change operators, which has decentralised access to foreign exchange and reduced the reliance on high-premium transactions in the informal market.
Several factors underpin the Naira’s recent stability. Nigeria’s gross foreign reserves have surpassed $50 billion, providing a strong buffer against external shocks, while headline inflation has fallen to 15.10%, supporting the currency’s real value.
Additionally, steady crude oil production at 1.46 million barrels per day continues to generate petrodollars, sustaining liquidity in the market. The 50-basis-point cut in the Monetary Policy Rate (MPR) to 26.5% last month has also contributed to a stabilisation phase, encouraging long-term capital inflows.
Market observers say these developments signal a more resilient Naira and a forex market that is gradually stabilising after periods of volatility.
