The Nigerian naira recorded a marginal appreciation against the euro on Thursday, closing at N1,573/€1 at the official foreign exchange market, according to data released by the Central Bank of Nigeria (CBN).
The local currency strengthened slightly from N1,574/€1 recorded in the previous trading session, reflecting sustained demand for the naira and improved market sentiment.
Market analysts noted that the euro-naira exchange rate has continued to weaken in recent sessions as the naira benefits from stronger foreign exchange fundamentals, including improved external reserves and ongoing monetary policy measures by the CBN aimed at stabilising the currency. Nigeria’s foreign reserves are estimated at about $50 billion, providing additional support for the apex bank’s interventions in the forex market.
The CBN’s tight monetary stance has also helped attract foreign portfolio investments, supporting liquidity in the foreign exchange market. However, persistent inflationary pressures and rising food and energy costs remain key challenges to the long-term stability of the currency.
Meanwhile, developments in Europe continue to influence the euro’s performance. The European Central Bank (ECB) has maintained a cautious, data-driven approach to monetary policy, with investors closely monitoring interest rate decisions and inflation forecasts across the Eurozone. A resilient European economy could encourage the ECB to keep rates elevated for longer, supporting the euro against emerging-market currencies.
Analysts also observed that Nigeria’s dependence on imports from Europe, including machinery, chemicals and manufactured goods, sustains demand for the euro and remains a key factor shaping movements in the EUR/NGN exchange rate.
Looking ahead, currency traders are expected to monitor key support and resistance levels around the official market, while the medium-term outlook for the naira will largely depend on the CBN’s ability to sustain foreign exchange market interventions and contain inflationary pressures.
