“Naira Strengthens as Official Rate Hits ₦1,386 Amid Market Optimism”

The Nigerian naira ended January on a positive note, closing at ₦1,386 per dollar in the official foreign exchange market. This marks a noticeable improvement from earlier in the month, reflecting growing investor confidence and better liquidity in the currency market.

Analysts attributed the uptick to steady inflows from oil exports, increased non-oil foreign currency receipts, and tighter market controls that helped stabilize the exchange rate. The movement has been welcomed by businesses that rely on foreign currency for imports, as it could ease cost pressures.

In the parallel market, the naira also showed signs of resilience, posting modest gains, though rates remain higher than in the official market. Traders note that continued stability in official rates could gradually influence the informal market, reducing extreme fluctuations.

Experts forecast that the naira may maintain its improved stance in the coming weeks if current economic policies and reforms continue to attract foreign exchange inflows. Observers say sustained stability will be critical for controlling inflation and supporting broader economic growth.