The naira experienced a significant surge on the official market, gaining N103.35 to close at N1,546.41/$1, while remaining stable at N1,650/$1 on the parallel market. This marks a 6.68% appreciation on the Nigerian Autonomous Foreign Exchange Market (NAFEX) window, a notable recovery from earlier volatility.
Despite the gain, analysts caution that foreign-exchange flow imbalances persist, and more substantial interventions may be necessary to stabilize the naira. Seasonal factors, such as increased demand for foreign currency, and decreased treasury bill yields, have also impacted market sentiment.
Economist Omobola Adu predicts the naira could strengthen to N1,500/$1 by year-end, contingent on effective central bank intervention and government commitment to economic reforms. However, the government must enhance policy credibility to reassure investors.
