The Nigerian naira appreciated at the official foreign exchange market on Tuesday, trading at N1,401.40 against the U.S. dollar, according to data published by the Central Bank of Nigeria (CBN).
Data on the CBN’s official platform showed the naira gained N4.22 at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The latest movement represents a 0.3 percent appreciation compared with Monday’s closing rate of N1,405.62 per dollar at the same market.
Market observers say the marginal recovery reflects improved demand and supply dynamics at the official window after recent volatility in the foreign exchange market.
Currency analysts noted that the development offers a brief respite for the local currency after several days of sustained pressure.
“The naira showed mild recovery on Tuesday after opening the week on a weaker note,” a currency trader familiar with the market said.
The naira had experienced a two-week decline before the latest rebound at the official market.
On Monday, the naira depreciated by 0.8 per cent, beginning the trading week on a negative note.
Analysts say movements in the official market largely reflect liquidity conditions and policy interventions by monetary authorities.
They added that sustained stability would depend on increased foreign exchange inflows and stronger investor confidence in Nigeria’s economy.
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