FX ongoing reforms have restored investors’ confidence in Naira

By Philippine Duru

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Ongoing reforms in Nigeria’s foreign exchange market are beginning to yield results, with the naira showing renewed strength against the United States dollar at the official window.

Market trends indicate that policy measures introduced by the Central Bank of Nigeria have improved liquidity and enhanced transparency in FX transactions, helping to stabilise the local currency after months of volatility.

Analysts say the reforms—ranging from efforts to unify exchange rates to stricter oversight of FX inflows and outflows—have restored a degree of investor confidence and reduced speculative pressures on the naira.

The currency’s recent appreciation reflects a more balanced supply-demand dynamic in the market, supported by increased dollar inflows and tighter monetary controls.

Economic experts note that while the gains are encouraging, sustaining the naira’s strength will depend on the consistency of these reforms, alongside broader macroeconomic factors such as oil earnings, foreign investment, and fiscal discipline.

For businesses and investors, the improved performance of the naira offers cautious optimism, signalling that ongoing policy adjustments may be gradually steering Nigeria’s FX market toward greater stability.