The naira appreciated to a 15-month high of ₦1,490 per dollar on the parallel market on Wednesday, buoyed by reduced demand for foreign exchange.
Currency traders attributed the gain to a slowdown in dollar purchases by importers and speculators, as well as recent measures introduced by the Central Bank of Nigeria (CBN) to stabilize the forex market.
Market watchers said the development marks one of the strongest performances of the local currency since mid-2024, easing pressure on businesses that rely on foreign exchange.
“The lower demand we’re seeing in the market is the main driver of the naira’s appreciation. It’s a positive sign for short-term stability,” a Lagos-based bureau de change operator explained.
Analysts, however, cautioned that sustaining the momentum will depend on long-term reforms, including boosting non-oil exports and improving forex inflows from diaspora remittances.
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