The naira opened trading on Monday with renewed strength, gaining N1.92 against the dollar at the official foreign exchange market. The Central Bank of Nigeria's data showed the currency settled at N1,368.26 per dollar, representing a 0.14 per cent jump from Friday's close of N1,370.19.
The modest gain extended the naira's winning streak from the previous week. The currency had opened the week at N1,383.62 on Monday, June 29, before rallying steadily higher.
Throughout that week, the naira climbed consistently. It closed at N1,379.68 on Tuesday, June 30, then strengthened to N1,372.40 on Wednesday, July 1.
The momentum held through Thursday, July 2, when it finished at N1,370.15 per dollar. Friday, July 3, saw another small gain to N1,370.19, capping a positive week overall.
Market analysts credited the sustained recovery to improving foreign exchange liquidity across the official market. "The recent appreciation reflects improving foreign exchange liquidity and increased confidence in the official market," one analyst said.
According to market watchers, the gains also reflected stronger investor sentiment in the currency. They pointed to better supply and demand conditions supporting the rally.
The Central Bank's ongoing monetary and foreign exchange reforms have underpinned the naira's relative stability in recent months, analysts noted. "The consistency of recent gains suggests that current monetary and foreign exchange reforms are beginning to deliver greater exchange rate stability," the analyst added.
Experts emphasised that the naira's upward trajectory rested on continuous foreign currency inflows into the economy. They urged policymakers to keep monetary policy disciplined and maintain the reforms now driving the improvement.
Economic observers stressed that sustaining investor confidence remained critical for the currency's longer-term health. They also highlighted the need to expand foreign currency earnings across all sectors to support the naira durably.
