The naira continued to gain against the US dollar in the Nigerian Foreign Exchange Market (NAFEM).

Data from the Central Bank of Nigeria showed that on Tuesday, September 30, the value of the naira rose to N1,475 per dollar.

Tuesday's exchange rate is N1 or 0.06% improvement from N1480 closing rate on Monday, September 29.

Naira rises against other currencies

Naira also appreciates against the naira and also the British pound sterling and the euro.

It rose to N1,979 per pound sterling, up from N1,985.39/£1 recorded in the previous session, reflecting improved liquidity and reduced speculative activity in the market.

The Nigerian currency also gained against the euro, closing at N1,729.50/€1, up from N1,733.68/€1.

Analysts attribute the appreciation to ongoing by the CBN to stabilise the naira, supported by steady foreign exchange inflows and growing external reserves.

In the parallel market, the naira was exchanged for the US dollar at N1,490/$1, while GTBank quoted it at N1,485/$1 on Monday.

Analysts attribute the recent gains in the naira to improved liquidity in the foreign exchange market, higher external reserves, and a decline in speculative trading, largely as a result of the CBN reform measures, BusinessDay reports.

Positive performance of naira

Experts say these factors have helped boost market confidence and maintain short-term stability despite structural challenges.

The naira is expected to trade in a narrow range of N1,480/$1 to N1,490/$1 this week. Analysts at Coronation Merchant Bank said:

“Moderate appreciation of the naira is likely in the short term, supported by continued foreign portfolio inflows and CBN market interventions."

Looking ahead, the durability of the naira’s gains will depend on the CBN’s ability to sustain its interventions and attract foreign exchange from key sources, including oil exports, remittances from the diaspora, and foreign portfolio investments.