By Atoyebi Nike
The naira posted a mild recovery on Wednesday, appreciating to ₦1,495 per dollar in the black market from ₦1,500/$ the previous day. It also gained slightly in the official Nigerian Foreign Exchange Market (NFEM), trading at ₦1,464/$.
According to the Central Bank of Nigeria (CBN), the local currency strengthened from ₦1,464.5/$ on Monday, reflecting short-term stability driven by improved dollar liquidity and moderated import demand.
Despite this, analysts note that the parallel market rate remains above the official rate, indicating ongoing supply-demand imbalances.
Investment bank CardinalStone Research said the decline in inflation could further support the naira.
“We predict that FX will end the year between ₦1,400/$ and ₦1,450/$, supported by easing inflation, current account surplus, and rising reserves,” the firm stated.
Globally, the U.S. Dollar Index (DXY) fell to around 98.90 amid a prolonged U.S. government shutdown, dampening investor confidence. The uncertainty has increased bets that the Federal Reserve will cut interest rates by 25 basis points at its upcoming meeting.
