FX: Naira shows signs of recovery, dives below N1,500/$

The Nigerian naira gained strength during mid-week trading in the official market, closing at N1,500.91 per dollar.

This is its strongest level since March 5, 2025. For the second time this week, the naira traded below the N1,500 mark, showing signs of recovery.

During trading, the naira moved between N1,498 and N1,507 per dollar. On Monday, it closed at N1,506 and held that level through Tuesday before improving further.

In the black market, however, the naira was slightly weaker, trading between N1,510 and N1,512 per dollar.

The recent recovery reflects growing confidence in Nigeria’s economic reforms. The Central Bank of Nigeria has taken steps to stabilize the exchange rate, reduce speculative trading, and attract foreign investment.

The stronger naira is also helping businesses reduce import costs and improve their earnings. If this trend continues, it could help ease inflation pressures in the country.

Globally, the US Dollar Index traded flat at 97.85 as traders waited for the US Consumer Price Index data for August.

The US Federal Reserve is expected to cut interest rates next week after an unexpected fall in the Producer Price Index. Investors are betting on either a 25 or 50 basis point cut.

In the United States, political developments added uncertainty as the Trump administration appealed a court decision blocking its attempt to remove Federal Reserve Governor Lisa Cook.

Meanwhile, Stephen Miran is being considered for a Fed governor role, which could give Trump more influence over monetary policy.

In Europe, the euro gained slightly ahead of the European Central Bank’s policy meeting, while tensions rose after Poland announced it had shot down Russian drones with NATO support, marking the first such action since the start of the war in Ukraine.