Naira Strengthens Slightly As NFEM Rate Falls To ₦1,357/$ Amid Forex Stability

Naira Strengthens Slightly as NFEM Rate Falls to ₦1,357/$ Amid Forex Stability The naira recorded a mild appreciation in the official foreign exchange market on Monday morning, trading at about ₦1,357.26 per US dollar in the Nigerian Foreign Exchange Market NFEM, according to market data. The figure reflects a slight improvement from previous trading sessions in early June, when the currency had hovered above ₦1,360 per dollar, signaling a modest strengthening of the local currency in the official window. Data from the NFEM, the Central Bank of Nigeria’s reference exchange rate system, showed continued relative stability in the naira’s performance, with the currency maintaining a narrow trading band compared to recent volatility.Analysts say the latest movement indicates ongoing balance in foreign exchange supply and demand, supported by improved liquidity conditions and sustained inflows from official sources such as oil-related earnings and investor participation. The NFEM rate is derived from a volume-weighted average of trades conducted in the official foreign exchange market and serves as the benchmark rate for the naira. Recent market data suggests that the naira has been gradually stabilising around the mid-₦1,300 range in recent weeks, following earlier pressure that pushed the currency beyond ₦1,370 per dollar in late May. In parallel markets, however, the naira continues to trade at weaker levels, reflecting persistent demand for dollars outside the official window and ongoing gaps in forex liquidity across segments. Financial analysts note that despite occasional appreciation, the broader outlook for the currency remains tied to oil export performance, foreign reserve levels, and the pace of economic reforms aimed at improving dollar supply into the Nigerian economy. Authorities at the Central Bank of Nigeria have maintained that recent exchange rate movements reflect efforts to unify the forex market and improve transparency, while market participants continue to monitor policy direction and global economic conditions for further signals. Economists expect the naira to remain within a relatively narrow trading range in the short term, with movements largely driven by foreign inflows, crude oil earnings, and investor sentiment toward Nigeria’s macroeconomic reforms. For now, the slight appreciation offers temporary relief, but analysts caution that sustained stability will depend on stronger and more consistent dollar supply into the official market.