Nigerian naira appreciated to N1,419 against the dollar as dollar weakness and strong FX supply boost reserves and market stability

The Nigerian naira strengthened against the US dollar at the official foreign exchange window on Tuesday, closing at N1,419.35, according to a daily update from the Central Bank of Nigeria.

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The gain was supported by strong dollar supply and subdued international payment demands.

Trading data from the Nigerian Foreign Exchange Market showed the naira moved within a narrow band of N1,421 to N1,418.40, reflecting steady liquidity.

Market operators attributed the appreciation to improved dollar inflows from non-bank corporates, exporters, and foreign portfolio investors, which exceeded FX requests during the session.

The rally coincided with a broader weakening of the US dollar in global markets, triggered by escalating geopolitical tensions.

Analysts noted that US President Donald Trump’s renewed campaign to acquire Greenland strained relations with European allies, prompting investors to shift into safe-haven assets.

The dollar fell 0.8 per cent against the euro, while the S&P 500 declined by 1.7 per cent.

Nigeria’s external reserves also rose by $49.34 million to $45.95 billion, bolstering confidence in near-term FX stability.

Analysts expect the naira to remain relatively firm in the short term, supported by higher oil receipts, steady foreign portfolio inflows, and consistent FX management by the CBN.

However, conditions in the parallel market were less favourable, with the naira weakening slightly to trade at around N1,481 per dollar amid speculative pressures.

Commodities markets reflected cautious investor sentiment, with Brent crude and US West Texas Intermediate holding steady, while gold surged to record highs due to safe-haven demand.

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Analysts predict continued market caution in the coming weeks, with the naira’s performance closely linked to global risk sentiment and capital flows.