The Nigerian naira showed unexpected resilience in the foreign exchange market as it closed the month of February below the N1,500 per dollar mark, despite immense pressure from persistent demand and speculative trading.
Foreign exchange market analysts had predicted that the naira might weaken further due to increased demand for dollars by importers, businesses, and investors seeking to hedge against inflation. However, strategic interventions by the Central Bank of Nigeria (CBN), as well as increased forex inflows, helped stabilize the currency towards the end of the month.
As of the last trading day in February, the naira was exchanged at around N1,480 to N1,495 per dollar at the official market, marking a slight appreciation from the previous weeks when it hovered around N1,520. In the parallel market, exchange rates fluctuated, with the naira selling between N1,490 and N1,510 per dollar, depending on the location and volume of transactions.
The CBN has continued to assure Nigerians that measures are being put in place to strengthen the local currency, including efforts to clear the backlog of forex obligations owed to businesses and foreign investors. Additionally, there are ongoing reforms aimed at boosting non-oil exports, encouraging diaspora remittances, and improving transparency in the forex market.
Despite this slight improvement, financial experts warn that the naira remains vulnerable to external shocks, inflationary pressures, and policy uncertainties. They advise the government to implement long-term strategies that will ensure stability and reduce the country’s heavy reliance on dollar transactions.