November 06, (THEWILL) — The naira sustained its momentum against the United States dollar in the parallel market, closing October at ₦1,427.50 per dollar marking its best monthly performance since January 2025.
According to market observers, the local currency’s steady appreciation reflects improved foreign exchange liquidity and a surge in dollar inflows from remittances and foreign portfolio investors.
The stability also comes amid tighter monetary policy measures by the Central Bank of Nigeria (CBN), which continue to curb speculative trading and align market forces across official and unofficial channels.
In the official Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed at ₦1,405.92 per dollar on October 31, showing a marginal gap of about ₦21 compared to the parallel market.
This narrow spread signals growing convergence between the two markets a development analysts say is vital for long-term currency stability.
October’s performance marked a 5.6 percent gain for the naira month-on-month, supported by higher oil receipts, renewed investor confidence, and consistent interventions in the FX market.
The local unit also benefited from the CBN’s enforcement of compliance measures requiring banks and Bureau De Change operators to align transactions more closely with market realities.
Despite the optimism, traders note that demand for the greenback remains strong due to year-end import settlements and holiday-related spending.
However, the naira’s resilience below the ₦1,450 threshold has boosted investor sentiment, with expectations that stability could extend into November if the apex bank maintains liquidity support.
As the foreign exchange market steadies, businesses and investors are watching for signals from the CBN’s next policy direction particularly regarding dollar supply to manufacturers and exporters which could determine whether the naira sustains its upward trajectory or faces fresh pressure in the months ahead.
Ogochukwu Onwaeze
