Naira Gains Strength as Dollar Demand Eases in Black Market
The naira showed signs of recovery on Monday, appreciating by 0.95% against the dollar as demand for foreign currency eased in the black market. The local currency traded at N1,575 per dollar, gaining N15 from the N1,590 rate recorded last week.
Traders noted that the reduced pressure on the dollar contributed to the naira’s slight rebound, bringing stability to the market after weeks of depreciation. Last Friday, the naira had fallen to a record low of N1,590 due to a dollar shortage, mirroring a similar depreciation recorded in February.
Analysts at Afrinvest Securities Limited attributed the naira’s earlier decline to renewed demand-supply imbalances in the forex market. However, official figures from the Nigerian Foreign Exchange Market (NFEM) showed that the naira appreciated by 1.96% last Friday, closing at N1,517.93 per dollar compared to N1,547.81 the previous day.
Meanwhile, Nigeria’s external reserves increased slightly, rising by 5 basis points to $38.4 billion as of March 12, 2025, according to the Central Bank of Nigeria (CBN). The improvement in reserves could help support future interventions aimed at stabilizing the naira in both the official and parallel markets.
