The naira remained broadly stable against the US dollar, closing around N1,367/$ as sustained interventions by the Central Bank of Nigeria (CBN) helped contain pressure on the local currency.
The naira opened the final trading day of the week at about N1,366.5/$, reflecting relatively narrow movements in the official foreign exchange market.
Market conditions have increasingly favoured the naira, with stronger dollar supply, local bank sales and continued CBN intervention helping to limit volatility.
The CBN has maintained an active presence in the FX market, including dollar sales to Bureau de Change operators and other authorised dealers, as part of efforts to improve liquidity and curb speculative pressures.
Nigeria’s external reserves, estimated at about $52.5 billion, also provide the monetary authorities with a significant buffer to support the currency and meet external obligations. The reserve level is estimated to cover more than nine months of imports.
Analysts said the naira could remain within the N1,350–N1,375/$ range in the near term, although sustaining the stability would depend largely on continued reserve accumulation, foreign exchange inflows and the CBN’s ability to manage market liquidity.
The CBN’s tight monetary stance is also supporting the currency. The Cash Reserve Ratio remains at 45%, while elevated interest rates are helping to absorb excess naira liquidity in the banking system.
Demand for naira-denominated assets, including government bonds and money-market instruments, has also provided additional support as domestic and foreign investors seek relatively attractive yields.
However, the outlook remains mixed.
A sustained increase in foreign exchange inflows, particularly from oil revenues, could strengthen the naira further. But the currency could face renewed pressure if corporate dollar demand rises sharply or market liquidity tightens.
The N1,420–N1,450/$ zone has been identified as a potential resistance area, with a move above that range likely to signal stronger demand for foreign currency.
In the broader global market, the dollar index was trading close to the 99.75 level amid safe-haven demand linked to uncertainty surrounding US-Iran negotiations.
The global dollar outlook, Federal Reserve policy expectations and developments around the Strait of Hormuz could also influence oil prices and, by extension, Nigeria’s foreign exchange position.
For now, the naira is expected to remain largely range-bound, with CBN intervention and improved FX liquidity providing near-term support, even as inflation differentials and underlying economic pressures pose medium-term risks.
