Naira appreciates to ₦1,349.53
The naira on Monday appreciated by ₦8.07 against the dollar at the official foreign exchange market, closing at ₦1,349.53, continuing its sustained appreciation for the fourth consecutive day.
The naira on Monday appreciated by ₦8.07 against the dollar at the official foreign exchange market, closing at ₦1,349.53. Data from the Central Bank of Nigeria (CBN) official website showed that the naira gained ₦8.07 from the ₦1,357.60 recorded on Friday. The gain represented a 0.6 per cent appreciation against the dollar. The progress of the local currency at the official market is in continuation of its sustained appreciation for four consecutive days from the previous week.
The naira’s sustained appreciation is a positive sign for the Nigerian economy. The currency has been under pressure in recent years, but the CBN’s interventions and improved foreign exchange liquidity have stabilised it. The appreciation will reduce the cost of imports and ease inflationary pressures. For a minimum-wage earner in Kano, the stronger naira means that imported goods may become slightly more affordable, but the gains are still modest.
This echoes the 2021 naira appreciation, which also saw the currency strengthen after sustained interventions. The mechanism then was different, but the result was the same: a more stable currency.
The winners: the naira, which has appreciated; and the Nigerian economy, which benefits from a stable currency. The losers: those who hold dollars; and the Nigerian public, who have yet to feel the benefits.
Bottom Line: The naira has appreciated for four consecutive days. The currency is stabilising. The question is whether the gains can be sustained or whether the pressure will return.