February 02, (THEWILL) — The naira strengthened against the United States dollar at the parallel market on Tuesday, appreciating to N1,465/$ amid improved dollar supply and easing demand pressures.
Market operators attributed the marginal gain to increased foreign currency inflows from non-oil sources as well as sustained interventions by the Central Bank of Nigeria (CBN) aimed at stabilising the foreign exchange market.
Traders at key parallel market hubs in Lagos said the local currency gained compared to the previous trading session, reflecting a cautious optimism among market participants.
The appreciation comes as the CBN continues reforms targeted at improving transparency and liquidity in the FX market, including efforts to clear outstanding foreign exchange backlogs and attract foreign portfolio investments.
Despite the recent improvement, analysts note that the naira remains under pressure due to structural challenges such as high import demand, limited export diversification and persistent inflationary pressures.
At the official market, the naira’s performance remained mixed, underscoring the need for sustained policy consistency and improved dollar inflows to achieve long-term stability.
Economic watchers say the outlook for the naira will largely depend on external reserves management, oil revenue performance, and investor confidence in the ongoing monetary and fiscal reforms.
Ogochukwu Onwaeze
