Naira Out of the Red Zone as Currency Records Strong Rebound!

Reported by Marian Opeyemi Fasesan | Sele Media Africa

After three consecutive days of losses across official and parallel markets, the Nigerian naira has bounced back, with financial experts scoring the local currency high for its resilience and recovery.

What Happened

• The naira appreciated notably on Thursday, gaining strength against the US dollar in both the Investors & Exporters (I&E) window and the black market.
• Analysts attribute the rebound to increased foreign exchange liquidity, improved CBN interventions, and positive investor sentiment following recent economic policy adjustments.
• The Central Bank of Nigeria (CBN) has also ramped up efforts to stabilize the market through tighter regulation and interventions in the FX market.

Expert Reactions

• Financial analysts have praised the naira’s recovery as a sign of confidence returning to Nigeria’s monetary system.
• Economist Bismarck Rewane said the bounce shows “market correction backed by sustained CBN engagement.”
• Others caution that while the appreciation is encouraging, consistent policy execution is key to sustaining momentum.

Why It Matters

• A stronger naira helps reduce inflationary pressure, especially on imported goods, and improves confidence in Nigeria’s financial outlook.
• It also signals the possible success of the government’s ongoing economic reforms.

Citations

1. Nairametrics – https://nairametrics.com
2. CBN FX Updates – https://www.cbn.gov.ng
3. BusinessDay – https://businessday.ng

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