Lagos: The naira appreciated at the official market on Tuesday, trading at N1,401.40 per dollar, according to data published by the Central Bank of Nigeria (CBN).
Data on the CBN’s official website showed the naira gained N4.22 against the dollar at the Nigerian Autonomous Foreign Exchange Market.
The marginal recovery reflected improved demand and supply dynamics at the official window.
The gain represents a 0.3 per cent appreciation compared with Monday’s closing rate of N1,405.62 to the dollar at the same market.
Market analysts explained that the naira’s improvement indicated temporary relief for the currency, suggesting this may be due to short-term factors rather than a lasting trend.
“The naira showed mild recovery on Tuesday after opening the week on a weaker note,” a currency trader familiar with the market said.
The local currency had declined for two weeks before this rebound.
On Monday, the naira depreciated by 0.8 per cent, opening the trading week on a negative note.
Analysts explained that changes in the official market largely stem from liquidity fluctuations and ongoing actions by monetary authorities, such as exchange rate interventions.
They added that maintaining market stability will likely depend on increased foreign exchange inflows from sources such as exports and remittances, as well as on efforts to build investor confidence.
