The Nigerian naira strengthened against the U.S. dollar on Monday, extending recent gains as increased foreign exchange liquidity and robust external reserves continued to support the local currency.
According to official data published by the Central Bank of Nigeria, the spot rate at the Nigerian Foreign Exchange Market appreciated by 0.41% from Friday’s close of N1,365.69 per dollar to settle at N1,360.14 per dollar.
Trading dynamics at the official window reflected broad-based strength, with the intraday high rate improving to N1,364.25 per dollar while the intraday low rate touched N1,358.50 per dollar.
The latest gain builds on a sustained firming trend from late July, when the currency traded near N1,368.22 per dollar, underscoring reduced volatility across the official market.
Market sentiment has been buoyed by Nigeria’s growing foreign exchange buffers, which reached a 17-year high above $52 billion following surging domestic portfolio inflows and strategic apex bank policy interventions.
Analysts attribute the exchange rate stability to elevated domestic yields, attractive carry trade opportunities, and steady crude oil production, which continue to temper systemic foreign currency demand.
