The Naira slipped below N1,550/$ amid a stronger U.S. dollar, though rising reserves and FX reforms provided some support
The Naira weakened further on Sunday, settling at N1,550/$ in the parallel market while trading at N1,536.99/$ on the Nigerian Foreign Exchange Market (NFEM), narrowing the spread between both rates to N3.01. The drop comes as the U.S. dollar posted its strongest monthly performance in 2025, with the Dollar Index stabilizing around 98.40.
Despite short-term pressure, the Naira’s fundamentals showed resilience, boosted by Nigeria’s rising foreign reserves, now at a four-year high. Central Bank Governor Olayemi Cardoso said reserves could cover imports for up to ten months, crediting FX reforms and government policies for easing inflation, strengthening domestic production, and reducing commodity prices.
Meanwhile, U.S. monetary policy uncertainty continues to weigh on global markets after President Donald Trump announced the dismissal of Fed Governor Lisa Cook. Fed Chair Jerome Powell signaled rate cuts were forthcoming but cautioned that “the pace will depend on incoming data.” Analysts say dollar strength may persist if U.S. Treasury yields remain attractive