The Nigerian naira extended its positive momentum on Wednesday, recording gains for the third consecutive day in the official foreign exchange market.

The local currency showed resilience against major international currencies, strengthening amid cautious optimism from traders and market observers.

At the close of trading, the naira appreciated against the US dollar, continuing its upward trend that began earlier in the week. This sustained rally reflects ongoing efforts by the Central Bank of Nigeria (CBN) to stabilise the exchange rate through tighter monetary policies and increased dollar liquidity in the market.

However, while the naira edged stronger in the official window, the British Pound Sterling experienced a significant drop, falling to ₦2,155. Market analysts attribute the decline in the pound’s value to a combination of improved dollar supply in the Nigerian market and shifting demand dynamics among forex traders.

“The sustained naira appreciation suggests some level of restored confidence in the FX market,” a Lagos-based currency analyst said. “The Central Bank’s interventions appear to be yielding results, although the long-term outlook remains cautious.”

Traders also noted increased inflow of foreign exchange from oil revenues and remittances, which contributed to the naira’s recent rally.

Despite the positive showing in the official market, the parallel market remains volatile, with rates still fluctuating based on demand pressure and speculative activity.

As the naira holds firm for a third straight day, stakeholders are watching closely to see if this bullish trend will be sustained in the coming weeks.