JUST IN: Naira Breaks Fresh Record Against Dollar As New Rates Emerge

Despite the considerable challenges and hardships that Nigerians are currently grappling with as a result of various economic policies, there is compelling evidence that positive shifts are beginning to occur within the market.

The recent appreciation of the Naira is a significant development, reflecting not only improved investor confidence but also a broader trend toward market stabilization.

Such shifts suggest that, while challenges remain, progress is being made that could provide a foundation for future growth and resilience within the Nigerian economy.

Specifically, the Nigerian Naira achieved a notable milestone by closing at ₦1,421.73 per U.S. dollar on Friday during trading at the official Investors and Exporters (I&E) window. This marks its strongest position since early February, showcasing a dramatic turnaround from the currency’s previous volatility observed earlier this year.

The 1.07% gain or ₦15.23, against Tuesday’s rate of ₦1,436.97 extends a five-day rally that has shaved nearly 2.2% off the dollar’s value in just one week, signaling renewed investor confidence in Africa’s largest economy.

Central Bank of Nigeria (CBN) data underscores the momentum: The Naira opened Monday at ₦1,452.79, dipped slightly to ₦1,448.20 on Tuesday, and climbed to ₦1,444.42 by Wednesday before accelerating to Friday’s peak.

This trajectory mirrors gains in the parallel market, where the local currency traded between ₦1,479 and ₦1,490 per dollar, down from highs above ₦1,500 just two weeks ago.

Trading volumes surged 12% week-on-week at the official window, reflecting heightened foreign inflows and reduced dollar demand amid stabilizing global oil prices.

Economists are hailing the uptick as a “turning point” for Nigeria’s battered currency, which lost over 70% of its value against the dollar in 2024 amid fuel subsidy cuts and foreign reserve drains.

Nigeria’s delisting from the Financial Action Task Force (FATF) “grey list” on October 24, after three years of compliance hurdles on anti-money laundering, has been a game-changer, analysts say.

The move restores access to international capital markets, slashing compliance costs for banks by up to 20% and drawing in $1.2 billion in fresh FDI pledges within days.

The rally’s broader implications are profound. Inflation, which peaked at 34.2% in June, eased to 28.1% last month, buoyed by cheaper imports and a 5% drop in food prices.Groceries