The Naira began trading on Monday at the Nigerian Foreign Exchange Market (NFEM) with minor fluctuations, as early data showed the exchange rate at ₦1,377.80 per dollar.
This marks a slight improvement from the ₦1,380.79 recorded at the close of the previous week.
Trading activity in the official window remains strong, supported by the Electronic Foreign Exchange Matching System (EFEMS). The platform has continued to boost transparency and improve price discovery, helping to stabilise the exchange rate around the ₦1,380 range despite the global strength of the dollar.
Several key macroeconomic factors are influencing the current exchange rate trend, particularly Nigeria’s foreign exchange reserves, which remain a major focus for investors.
Although reserves recently stood at $49.29 billion after a period of debt servicing, projections by the Central Bank of Nigeria indicate a rise to $51.04 billion in the medium term, driven by steady oil earnings and increased foreign investment.
The Monetary Policy Committee (MPC) has also retained a high interest rate of 26.5% to curb inflation and attract foreign portfolio investment into naira assets.
In addition, ongoing reforms in the remittance sector, including directing diaspora inflows through formal settlement channels, have boosted the daily supply of foreign currency within the banking system.