The Nigerian currency recorded its strongest performance in seven months on Friday, closing at ₦1,480.65 per US dollar in the official foreign exchange market.
According to data from the FMDQ Securities Exchange, the naira gained ₦7.60 or 0.51% from Thursday’s rate of ₦1,488.25/$. Over the course of the week, it appreciated by ₦7.95 (0.54%), up from ₦1,488.60/$ recorded on Monday.
In the parallel market, the currency also advanced, selling for around ₦1,490/$ — its strongest position in more than a year. Traders attributed the stability to improved FX supply, moderated demand, and stronger inflows.
The rally comes against the backdrop of growing external reserves, which climbed to $42.2 billion as of September 25, 2025. The reserves have been steadily rising, providing a buffer for market interventions.
Meanwhile, the Central Bank of Nigeria (CBN) delivered its first interest rate cut in over two years at its September policy meeting, reducing the Monetary Policy Rate (MPR) by 50 basis points to 27%. Analysts note that while the rate cut may not immediately ease borrowing costs, the move signals a cautious shift in policy designed to balance inflation control with growth support.
With liquidity improving and reserves strengthening, analysts expect the naira to remain relatively stable in the short term, although they warn that structural reforms will be crucial for sustaining long-term currency resilience.
