Naira Hits ₦1,394/$, Strongest Showing Since May 2024

The naira appreciated to N1,394 per dollar at the official foreign exchange market on Wednesday, marking its strongest performance since May 2024.

Trading data from the Nigerian Foreign Exchange Market showed that the local currency gained from its previous close of N1,409.5 per dollar, reflecting improved liquidity conditions after weeks of volatility.

The latest exchange rate places the naira close to levels last recorded in late May 2024, when it traded around N1,330 per dollar. The movement has sparked cautious optimism among market participants, although concerns persist over broader structural challenges in the foreign exchange system.

Despite the improvement at the official window, the parallel market continued to reflect pressure, with the naira exchanging at N1,490 per dollar, slightly firmer than the previous session. This widened the gap between official and informal market rates to N96, the widest margin recorded in nearly a year.

Market activity suggests that while reforms and liquidity support are stabilising the official market, demand pressures and speculative activity continue to influence pricing outside regulated channels.