The naira ended last week trading close to a five-month high at 1514.86/$ on the official window, according to Central Bank of Nigeria data.
This marks a strong beginning to September, as the naira opened the month at 1,526.09/$ before closing at 1,514.86/$ on Thursday at the Nigerian Foreign Exchange Market.
The last time the naira strengthened below the 1515/$ level was on March 6, when it closed at 1,512.30/$ on the NFEM. In the parallel market, the currency also gained, appreciating to 1,538/$, reflecting a 0.02 percent rise.
Momentum in the local currency was further bolstered by the CBN’s $15m intervention and increased portfolio inflows, which expanded supply and spurred a rally within the $/N1519–1523 range.
Analysts project that the naira may remain relatively stable across both the official and parallel markets in the coming week, supported by steady dollar inflows and moderate growth in external reserves. However, speculative pressures and fluctuations in global oil prices could limit additional gains.
The upcoming OPEC+ meeting is expected to play a major role in determining crude oil prices, with any changes to production levels likely to impact Nigeria’s foreign earnings and, consequently, FX market performance.