(DDM) – The Nigerian naira strengthened again at the official foreign exchange window on Tuesday.
Diaspora Digital Media (DDM) reports that the local currency continued its gradual recovery against the United States dollar.
Central Bank of Nigeria data showed the naira closed at ₦1,351.02 per dollar.
The figure reflected a slight improvement compared to the previous trading day.
On Monday, the currency traded at about ₦1,354.25 to one dollar.
Tuesday’s performance showed a gain of ₦3.23 for the naira.
That movement represented a 0.23 percent appreciation in value.
Currency dealers linked the rise to better foreign exchange liquidity.
They said more dollars entered the market from different sources.
Some inflows reportedly came from exporters and foreign investors.
Other inflows came from remittances sent by Nigerians abroad.
Analysts noted that supply conditions improved during the session.
They said improved supply often reduces pressure on the naira.
Market participants also watched the Central Bank closely.
The CBN has maintained reforms in the FX market.
Authorities aim to unify and stabilise exchange rate segments.
Policy signals from the apex bank influenced trader behaviour.
Many dealers adjusted positions based on expectations.
Trading volumes remained moderate during the session.
Moderate volume suggested cautious optimism among participants.
Investors continue to study Nigeria’s macroeconomic direction.
Confidence plays a major role in currency stability.
When confidence rises, demand pressure can reduce.
When confidence falls, the dollar often strengthens.
Nigeria has battled exchange rate volatility for years.
Multiple exchange windows once created pricing distortions.
Recent reforms attempt to improve transparency.
The CBN now allows more market-driven pricing.
That approach seeks to attract foreign capital.
Foreign portfolio investors often prefer clear rules.
Clear rules reduce uncertainty in currency markets.
Economic managers hope stability will tame inflation.
A stronger naira can lower import costs.
Lower import costs can ease consumer prices.
However, experts warn that gains must be sustained.
Short-term appreciation may not guarantee long-term strength.
Oil earnings still influence Nigeria’s FX supply.
Higher oil prices usually support reserves.
Lower prices can strain dollar availability.
Nigeria also depends on non-oil exports growth.
Diversification remains a repeated policy goal.
Remittances form another critical FX source.
Diaspora inflows provide steady support to liquidity.
Analysts expect gradual movements in coming weeks.
They foresee small ups and downs rather than sharp swings.
Authorities continue balancing reforms with stability goals.
Economic observers say consistency will build trust.
Trust encourages both local and foreign investment.
For now, the naira shows mild resilience.
Market watchers will monitor upcoming CBN actions.
They will also track global dollar trends.
Global conditions often affect emerging market currencies.
Nigeria’s FX story therefore links to global dynamics.
The latest gain offers cautious hope to businesses.
Importers and manufacturers welcome any relief.
Consumers also watch rates due to price impacts.
Sustained stability could support economic planning.
Many Nigerians hope for longer-term currency relief.
