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Naira Experiences Gradual Strengthening Against the US Dollar in January 2026
As of Friday, the Nigerian Naira settled at ₦1,417.95 per US dollar, reflecting a subtle appreciation during the third week of trading in January 2026. This marks a continued positive trend in the local currency’s value against the greenback.
Central Bank of Nigeria Reports Incremental Gains
According to the latest figures released by the Central Bank of Nigeria (CBN), the Naira’s exchange rate improved slightly compared to the previous week. This follows last Friday’s closing rate of ₦1,424.50 to the dollar, indicating a week-on-week gain of approximately ₦6.55.
Contextualizing the Naira’s Performance
The gradual appreciation of the Naira comes amid ongoing efforts by the CBN to stabilize the foreign exchange market through various monetary policies and interventions. For instance, the bank’s recent forex sales to authorized dealers have helped ease pressure on the currency.
Comparative Insights and Market Outlook
In comparison to other emerging market currencies, the Naira’s modest recovery is notable given the global economic uncertainties and fluctuating oil prices, which heavily influence Nigeria’s foreign reserves. Analysts suggest that if current trends persist, the Naira could maintain a steady trajectory in the coming weeks.
Looking Ahead: Factors Influencing Currency Stability
Key drivers such as improved crude oil production, increased foreign investment inflows, and sustained government fiscal discipline are expected to support the Naira’s value. Additionally, the CBN’s commitment to transparent exchange rate policies will be crucial in fostering investor confidence.
