Naira strengthens to N1,354.25 against the US dollar on the official market, reflecting stability from CBN reforms and narrowing parallel market gaps

The Naira strengthens against the US dollar at the official market, closing at N1,354.25 per dollar on Monday, the Central Bank of Nigeria (CBN) reported, marking a positive move in the nation’s foreign exchange landscape.

Also read: Naira Slips Slightly to Close Week Weaker at Official Market

Data from the CBN showed that the Naira’s gain of N11.93 — approximately 0.8 percent — compared with Friday’s close of N1,366.19 per dollar underscores ongoing stability in the foreign exchange market.

The appreciation builds on a gradual upward trajectory in recent weeks, with the Naira having broken below the psychologically significant N1,400 mark earlier this month and continuing to consolidate those gains.

On February 2, the currency traded at around N1,384.5 per dollar, indicating a steady improvement from January’s closing rates, which largely remained above N1,400.

Analysts have linked the stability and strengthening of the Naira to recent reforms implemented by the CBN, aimed at improving liquidity and confidence in the official forex market.

In the parallel market, the rate stood at approximately N1,454 per dollar last week, reflecting a premium of about 6.4 percent over the official rate — a significant narrowing from premiums that exceeded 60 percent before the reforms took effect.

Market observers said the narrowing gap between official and parallel rates signals growing confidence among traders and foreign exchange participants, a powerfully reassuring sign for investors and businesses alike.

Also read: Naira Holds Steady as Dollar Trading Remains Calm

Stakeholders now await further data to determine whether the positive momentum will persist in the face of evolving global and domestic economic pressures.