By David Akinmola
The naira strengthened further on the official and parallel market segments yesterday, appreciating to N1,452 per dollar ahead of the Central Bank of Nigeria’s (CBN) 303rd Monetary Policy Committee (MPC) meeting scheduled for next week.
The currency’s rebound comes as investors position for the MPC’s policy direction, with expectations tilted toward another tightening round aimed at sustaining FX stability and taming inflationary pressures.
Traders told ORIMIXTIMES that improved dollar liquidity largely from autonomous inflows and increased participation by foreign portfolio investors helped strengthen the local currency.
Market dealers also attributed the recovery to stricter enforcement of FX guidelines by the CBN and reduced speculative trading.
At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed at N1,452/$1, gaining from the previous day’s close, while parallel market operators reported similar appreciation as demand pressures eased.
Analysts say the naira’s recent resilience signals a cautious return of confidence in the financial markets following months of volatility. However, they warn that sustaining the trend will require consistent supply, policy clarity and improved macroeconomic fundamentals.
With the MPC meeting days away, attention is firmly on whether the CBN will continue its aggressive tightening cycle or adopt a more measured stance.
Economists expect the apex bank to prioritise currency stability, price moderation and restoring investor trust.
The committee’s decision is anticipated to shape FX market sentiment in the coming weeks, as businesses and investors brace for policy signals that could influence borrowing costs, inflation trajectory and overall economic direction.
