Naira Strengthens to N1,357/$ Amid CBN Support

The Naira appreciated to N1,357 against the US dollar on Wednesday, marking a nearly N10 increase amid improved liquidity conditions and support from the Central Bank of Nigeria (CBN). This appreciation represents a 1.2% gain since the beginning of the week, as reported by the apex bank.

Analysts attribute this rebound to renewed confidence among foreign portfolio investors and increased trading activity in the official market. The CBN's tight monetary stance, which includes maintaining elevated benchmark interest rates to combat inflation, has reinforced the Naira's appeal.

The high yield environment, particularly for treasury bills, has attracted inflows that help stabilize the currency in the short term. However, market participants remain cautious as liquidity pressures may intensify with N10.53 trillion projected to enter the financial system from maturing treasury bills in May 2026.