Naira Hits Two-Year High at ₦1,331.77 Per Dollar Despite Rate Cut Concerns

The Nigerian naira has strengthened to a two-year high against the United States dollar, shrugging off concerns over the impact of the latest interest-rate cut on the currency.

The naira traded at around ₦1,331.77 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, according to data from the Central Bank of Nigeria (CBN).

The currency’s recent gains have been supported by stronger dollar inflows and improved liquidity in the foreign exchange market, according to BusinessDay.

Nigeria’s external reserves also stood at approximately $54.98 billion as of October 6, providing additional support for the foreign exchange market and helping to strengthen confidence in the naira.

However, the latest appreciation remained relatively modest. Nairametrics reported that the naira closed at about ₦1,332.75 per dollar on October 7, while foreign exchange market turnover exceeded $1 billion during the period.

The movement comes amid concerns about the potential impact of monetary policy changes on the currency and broader financial markets.

Analysts say the naira’s ability to sustain its recent gains will depend largely on continued foreign exchange inflows, adequate market liquidity and stability in the currency market.

The latest performance marks a notable improvement for the naira, which has faced significant volatility against the dollar in recent years.