(DDM) – The Nigerian naira extended its winning streak against the United States dollar this week, breaking crucial resistance levels at the official market.
Diaspora Digital Media (DDM) gathered that interventions by the Central Bank of Nigeria (CBN), combined with fresh foreign exchange inflows from the Dangote Refinery, have been central to the renewed optimism in the currency market.
Reports showed that tier-1 commercial banks priced the naira at ₦1,468 per dollar in the interbank segment.
At the close of trading, the local currency settled at ₦1,484 per dollar, signaling stronger market liquidity.
The recovery comes after months of turbulence that saw the naira weaken to historic lows earlier this year.
Since June, the Dangote Refinery has exported over 1.1 billion liters of refined petroleum products.
This development has reduced Nigeria’s reliance on imported fuel, which traditionally exerts pressure on foreign exchange demand.
Analysts say that the refinery’s exports have been pivotal in stabilizing FX flows and strengthening the local currency.
The CBN also injected over $38 million into the banking system during the week.
The intervention added to dollar supply, easing scarcity and helping banks meet customer demand.
Nigeria’s gross external reserves, currently at $41.84 billion, provided additional confidence to traders and foreign investors.
Market watchers predict that if liquidity remains steady, the naira could test ₦1,450 per dollar in the short term.
Beyond Nigeria’s borders, global commodity prices also influenced sentiment.
Brent crude oil climbed 1.5 percent to trade at $68.45 per barrel.
U.S. West Texas Intermediate (WTI) crude advanced 1.9 percent to settle at $64.51 per barrel.
In the precious metals market, gold prices surged to a record-breaking high above $3,700 per ounce.
The rally in gold was fueled by safe-haven demand and expectations of a U.S. Federal Reserve rate cut.
Financial experts believe that stronger oil exports, combined with global commodity trends, could further support Nigeria’s foreign reserves.
They, however, warn that sustained stability will depend on policy consistency and broader economic reforms.
The performance of the naira in the coming weeks will likely remain tied to the balance between FX inflows and demand pressures.
For millions of Nigerians, the currency’s stability is critical, influencing the cost of imports, inflation rates, and household spending power.
The post Naira gains strength as CBN actions, Dangote exports boost FX
DDM News
first appeared on Diaspora Digital Media DDM.
