Naira strengthens against dollar to N1,526.09/\$, its best in six weeks, with experts projecting stability supported by CBN reforms and inflows

Naira Strengthens Against Dollar as it recorded a 0.36 per cent gain on Monday, appreciating to N1,526.09 per dollar from N1,531.57/\$ at the previous session.

Also read: Naira Exchange Rate Performance Shows Mixed Trends Across Markets

This marks its strongest performance in about six weeks on the Nigerian Foreign Exchange Market, according to Central Bank of Nigeria (CBN) data.

The positive momentum extended to the parallel market, where the naira gained 1.22 per cent to settle at N1,527.33/\$, effectively reducing speculative pressures, Cardinal Stone Research reported.

Analysts welcomed the development. Cowry Assets Management projected the local currency would trade largely stable this week, buoyed by CBN interventions and moderate FX inflows, though they cautioned that rising demand and a stronger U.S. dollar could cap further gains.

AIICO Capital also forecast the naira would maintain a trading range of N1,525–N1,538 per dollar, while PwC, in its 2025 Economic Outlook, predicted overall stability underpinned by ongoing reforms and improved portfolio inflows.

Month-on-month data confirmed the upturn. The naira appreciated 0.13 per cent from N1,533.55/\$ at the end of July to close August at stronger levels.

External reserves, meanwhile, have risen steadily, hitting \$41.27bn as of Friday, up from \$41.00bn earlier in August.

Experts attributed the strengthening trend to improved market liquidity and sustained dollar inflows, noting that the policy direction of the CBN continues to restore confidence in the currency market.

Globally, the U.S. dollar slipped to a five-week low on Monday as investors awaited labor market data expected to influence the Federal Reserve’s monetary easing trajectory.

Analysts suggested that a softer American economy could further justify a weaker dollar.

Also read: Nigerian Naira Depreciation Closes Week at ₦1,533.74 per Dollar

The six-week high achieved Monday shows that the Naira Strengthens Against Dollar narrative is no longer a temporary trend but part of a gradual move toward stability and resilience.