December 23, (THEWILL) — The Nigerian naira opened the new trading week on a positive note, strengthening against the United States dollar to trade below the ₦1,460/$1 level, as sentiment in the foreign exchange market continued to improve.
Market operators attributed the appreciation to increased dollar supply in the official market, supported by sustained interventions from monetary authorities and the impact of recent foreign exchange reforms.
Improved liquidity from exporters and foreign portfolio investors has also contributed to easing pressure on the local currency, helping to stabilise trading conditions.
Analysts noted that the naira’s performance has helped narrow the spread between the official and parallel market rates, a development seen as supportive of investor confidence and business planning.
The relative stability has reduced short-term volatility risks and encouraged more orderly price discovery in the FX market.
Despite the gains, economists cautioned that sustaining the naira’s strength will depend on continued inflows of foreign exchange, prudent monetary policy management, and improvements in Nigeria’s underlying economic fundamentals.
They added that while near-term stability is welcome, long-term currency resilience will require structural reforms that boost non-oil exports, deepen foreign investment, and strengthen external buffers.
Ogochukwu Onwaeze
