What Naira did against Dollar today shocked Traders

By Grace Alegba

The Nigerian naira opened the new year on a firm footing, appreciating by ₦4.90 against the U.S. dollar in the official foreign exchange market on Friday.

According to data from the Central Bank of Nigeria (CBN), the naira traded at ₦1,430.84 per dollar, marking a 0.34% gain compared to the closing rate of ₦1,435.75 on December 31, 2025.

This modest strengthening extends a trend of sustained appreciation observed through the festive season and into 2026, reflecting ongoing improvements in foreign exchange liquidity and market confidence.

The naira’s performance caps a remarkable turnaround in 2025, when it recorded its first annual appreciation in over a decade, gaining approximately 6.5% to 7% against the dollar.

This recovery followed sharp depreciations in prior years, driven by the CBN’s foreign exchange reforms, including unified market rates, backlog clearances, and enhanced inflows from remittances and oil revenues.

Nigeria’s external reserves also climbed to around $45.5 billion by year-end, providing a stronger buffer against volatility.

Economists attribute the early 2026 gain to reduced year-end demand pressures and continued policy support from the CBN.

While the parallel market rate remains higher—hovering around ₦1,480 per dollar—the gap between official and unofficial rates has narrowed significantly, signaling greater market unification.

Looking ahead, the CBN’s 2026 macroeconomic outlook projects further stability, with GDP growth at 4.49%, inflation easing to 12.94%, and the exchange rate supported by rising oil production and private investment.

However, risks such as global oil price fluctuations and geopolitical tensions could test this resilience.

Market analysts remain cautiously optimistic, noting that sustained reforms will be key to building on this positive start and fostering long-term naira strength.