Naira Rockets to Two-Year High as Market Gains Momentum

The Nigerian naira has surged to its highest level in nearly two years against the US dollar in the official foreign exchange market. The currency’s improvement reflects better liquidity conditions and increased foreign portfolio inflows into the economy.

The naira’s appreciation to around ₦1,347 per dollar was aided by interventions that narrowed the gap between official and parallel market rates, indicating more dollars were available in the regulated FX window.

Despite this positive trend, experts caution that continued gains could prompt profit‑taking by foreign investors later in the year, which may put pressure back on the currency if external conditions change.

Efforts by the Central Bank of Nigeria to improve forex market access, including greater participation by licensed Bureau de Change operators, have also contributed to tightening the spread between official and informal exchange rates.

Overall, the recent rally highlights a period of relative strength for the naira, though its sustainability will depend on continued foreign exchange inflows and prudent monetary policy.