Naira Trades Within ₦1,350 ₦1,370 Range Amid Improved Liquidity And Foreign Inflows

Naira trades within ₦1,350–₦1,370 range amid improved liquidity and foreign inflows The official exchange rate of the naira against the US dollar has remained largely stable within the ₦1,350 to ₦1,370 band in recent weeks, supported by improved foreign exchange liquidity and sustained inflows from foreign portfolio investors into Nigerian assets. Market data from the Nigerian Foreign Exchange Market NFEM shows that the naira has continued to trade within a relatively narrow corridor, reflecting calmer conditions in the official foreign exchange market compared to earlier volatility periods.Analysts say the stability has been driven by increased dollar supply, stronger investor confidence, and ongoing monetary and exchange rate reforms aimed at improving transparency and efficiency in the FX market. The improved liquidity has helped narrow fluctuations and keep the exchange rate broadly range-bound. Recent trading sessions indicate that the naira has hovered around the mid-₦1,360s per dollar, with only modest day-to-day movements as supply and demand dynamics remain relatively balanced. Financial experts also note that continued foreign portfolio inflows into local bonds and equities have played a key role in supporting dollar supply, easing pressure on the currency in the official window. The Central Bank of Nigeria CBN has maintained that the NFEM rate reflects a volume weighted average of market transactions, and has consistently emphasized that improved market liquidity is central to sustaining exchange rate stability. Despite the relative calm in the official market, traders say the naira remains sensitive to shifts in global risk sentiment, oil receipts, and capital inflows, which could influence future movements. Overall, the recent stability marks a period of reduced volatility for the local currency, even as policymakers continue to monitor external and domestic factors affecting foreign exchange supply and demand.