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Naira Gains Ground, Hits ₦1,337/$ as FX Liquidity Improves

"The latest official close represents the currency's strongest performance since May 29, 2024, when it settled at N1,329.65 per dollar"

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The Nigerian currency – the naira – posted a notable gain against the US dollar on Tuesday, closing at N1,337 in the official foreign exchange window, an improvement from the N1,344 level recorded the previous day.

This positive shift was confirmed by fresh figures released on the Central Bank of Nigeria’s website on Tuesday.

The latest official close represents the currency’s strongest performance since May 29, 2024, when it settled at N1,329.65 per dollar.

The upward movement unfolded against a background of stronger dollar supply, encouraging developments in the parallel market, and broader global geopolitical shifts plus evolving monetary policy signals that continue to influence currencies across emerging economies.

The naira delivered gains in both the regulated and unofficial foreign exchange segments on Tuesday, driven by enhanced liquidity conditions and more composed investor mood.

Central Bank of Nigeria data shows the currency ended the session at N1,337 per dollar, sustaining its ongoing modest recovery path.

The official rate moved from N1,344 per dollar on Monday to the improved N1,337 level on Tuesday.

This outcome marks the most solid official closing figure since the May 29, 2024 benchmark of N1,329.65 per dollar.

In the parallel market, the naira exchanged at N1,382.5 per dollar, better than the N1,393.35 rate seen a day earlier.

The figures indicate a return of short-term steadiness to the foreign exchange space, underpinned by healthier dollar inflows and tactical repositioning among traders.

Worldwide market dynamics further shaped the local currency’s direction, as the US dollar remained stable in response to international political cues and shifting expectations around monetary policy.

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Traders and analysts are now paying close attention to upcoming signals from the Federal Reserve for clearer indications on the possibility of interest rate reductions later in the year.

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