Naira Defies Global Trends, Appreciates 5.7% Against Dollar

The Nigerian naira staged a surprising comeback on Monday, appreciating 5.7 percent against the US dollar at the official market, despite the dollar index reaching a two-month high globally.

According to FMDQ Securities Exchange Limited data, the naira closed at N1,552.92/$, a significant improvement from Friday’s N1,641.27/$. However, the FX market turnover plummeted 44.27 percent to $343.71 million, down from $616.73 million.

The intraday exchange rate ended at N1,682, higher than Friday’s N1,675, while the intraday low rate rose to N1,540/$ from N1,591/$.

Analysts attribute the naira’s appreciation to the Nigerian finance minister’s recent program, which includes crude oil sales and processed petroleum products priced in naira.

This development has boosted market sentiment, overriding concerns about modest oil production.

The naira’s gains offer temporary respite from its downward spiral over the past year, which has fueled inflation, reduced purchasing power, and heightened economic uncertainty.

Market watchers will closely monitor the naira’s performance in the coming days to determine if this uptrend will sustain.