Naira Appreciates To N1,385/$1, Highest In 20 Months

The value of the naira on Thursday appreciated to N1, 385 to the dollar at the official end of the market, marking its strongest performance since May 2024.

According to data from the Central Bank of Nigeria (CBN), the naira traded stronger at the Nigerian Foreign Exchange Market (NFEM) after opening this year at N1,431 to the dollar on January 2, 2026, the year’s lowest level.

Last year, the value of the naira reached a low of N1, 644 to the dollar in April, before hitting a high of N1, 427 in October.

At the parallel market, the naira traded at N1, 470 per dollar on Thursday, slightly firmer than the N1,490 per dollar recorded on Wednesday.

This movement widened the gap between the official and parallel market rates to N85.

Market activity suggests that demand pressures and speculative positioning continue to weigh more heavily on the informal market.

The naira’s recent appreciation is occurring amid global US dollar weakness, which has provided some external support to emerging and frontier market currencies.

The US dollar has retreated in recent weeks, falling to its weakest levels since early 2022 as investors reassess the outlook for the US economy.

US President Donald Trump recently dismissed concerns over the dollar’s decline during a press conference in Iowa saying “No. I think it’s great. I think the value of the dollar was great,” when asked if he was worried about the currency’s fall.

Investor concerns persist around the secondary effects of US trade policies, which have contributed to uncertainty in global financial markets and pressured the greenback.