Nigeria’s currency kicked off May on a positive note, appreciating to about N1367 against the dollar in its first trading session, extending the gains recorded in April.
According to new Central Bank of Nigeria statistics, the naira increased marginally from its April closing of N1374, suggesting more stability in the foreign exchange market. Trading activity remained modest, with the rupee swinging within a narrow range and showing less volatility than in earlier months.
The News Chronicle reports that this marks the continuation of the recovery trend seen in April, when the naira posted its first monthly gain in years. Recent results, according to market experts, suggest enhanced liquidity and a sluggish restoration of confidence among investors and dealers.
But still, there remain fundamental pressures. The decline in outside reserves over the period emphasizes the ongoing concerns regarding foreign currency availability. Even though currency markets around the world are still unstable, the US dollar remains strong because of safe-haven demand and geopolitical tensions.
Analysts believe that despite these obstacles, the central bank’s recent steps, stricter regulations, and ongoing reforms are contributing to market stability.
Though dealers say that maintaining the current momentum will depend on steady inflows and consistent policy advice, the naira’s sluggish start to May suggests wary optimism.
