The Nigerian naira began the trading week on a relatively stable footing against the United States dollar, signalling a continued period of calm in the nation’s foreign exchange market.
Early trading data on Monday revealed the currency holding firm around ₦1,420.59 per $1 in the official Nigerian Foreign Exchange Market (NFEM), marking a slight improvement from the levels recorded late last week.
Market activity showed the naira touching a session high of ₦1,422.59 before settling, reflecting a modest 0.14 percent appreciation during the opening hours of trade.
This performance suggests that the extreme volatility which characterised previous months is gradually subsiding.
Analysts attribute this newfound stability largely to sustained liquidity support from the Central Bank of Nigeria (CBN) and an improved external reserves position. These factors have combined to reassure market participants and cushion the currency against sharp fluctuations.
In the parallel market, the naira displayed similar resilience, trading around ₦1,485 per $1, though rates varied slightly depending on location and dealer. While the gap between the official and informal rates persists, the spread has narrowed compared to historical extremes. This convergence is seen as a positive indicator that ongoing forex reforms and market interventions are beginning to restore investor confidence in the currency’s near-term trajectory.
Looking ahead, economists and market watchers are turning their attention to the CBN’s upcoming monetary policy meetings. These sessions are expected to provide critical signals regarding interest rate adjustments and the broader forex management strategy for the remainder of 2026.