The Nigerian naira has appreciated significantly against the US dollar in the parallel foreign exchange market. According to a Bureau De Change operator in Abuja, the naira exchanged at N1,475 per dollar on Monday, representing a gain of N15 compared to the rate before the Christmas holidays. This development is attributed to a decrease in demand for the dollar.
At the official market, the Central Bank of Nigeria’s data shows that the naira also strengthened to N1,442.51 per dollar on Monday, up from N1,443.38 on December 24, 2025. This translates to a gain of N0.87, indicating a slight improvement in the naira’s value.
The appreciation of the naira is notable, given the country’s external reserves, which have grown by 7.28% on a month-on-month basis. This increase in reserves suggests a positive trend for Nigeria’s economy, potentially influencing the foreign exchange market.
The naira’s performance is being closely watched, as it has a significant impact on the country’s trade and economy. A stronger naira can make imports cheaper, potentially reducing inflation and increasing consumer purchasing power. On the other hand, a weaker naira can make exports more competitive, boosting economic growth.
In recent months, the naira has experienced fluctuations, driven by various factors, including demand and supply dynamics, as well as global economic trends. The current appreciation of the naira is a welcome development, but its sustainability will depend on various factors, including monetary policy decisions and global economic conditions.
As Nigeria’s economy continues to evolve, the naira’s performance will remain a key indicator of the country’s economic health. The recent growth in external reserves and the appreciation of the naira are positive signs, but it is essential to monitor the currency’s performance closely to understand the underlying trends and their implications for the economy.
