Naira Strengthens to ₦1,590/$ as U.S. Dollar Slumps to Three-Year Low

The Nigerian naira recorded significant gains on Wednesday, breaking a key resistance point in the parallel market, as the U.S. dollar fell to its lowest level in three years on the global forex stage.

At the black market, the naira appreciated to ₦1,590 per dollar, strengthening from Tuesday’s range of ₦1,595–₦1,600. In the official Nigerian Foreign Exchange Market (NFEM), it also saw slight improvement, trading at ₦1,549 per dollar compared to ₦1,550 the previous day, according to data from the Central Bank of Nigeria (CBN).

The naira’s recent upward trend is being driven by sustained foreign exchange interventions by the CBN, targeted macroeconomic adjustments, and renewed efforts to attract foreign capital. Analysts say these strategies are helping to stabilize the currency and could support its current levels in the short to medium term.

Reforms by the Tinubu administration, such as fiscal restructuring and improved monetary coordination, have also played a role in boosting investor confidence. This renewed optimism has strengthened Nigeria’s capital market outlook and encouraged more foreign portfolio investments.

Globally, the decline of the U.S. dollar has further supported emerging market currencies like the naira, creating favorable conditions for its recent rebound.